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Upper Michigan ideas for a broke but willing traveler?

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My sweetie and I are both between jobs and live in Bloomington, Indiana. We're looking to take a few days to drive up to saugatuck (or thereabouts) to be near a big body of water in a charming town. Looking for cheap but nice accommodations, nearby beach (swimming not necessary, just a great view), cute shops and good eats. Any ideas for two broke but willing travelers? We can spend about $400 not including gas money. Thanks!

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