Hi redgardo.
I've got a 1984 Mk2 which I've had since 1987. I noticed the engine starting to run hotter a while ago so I just renewed the whole cooling system. I think a new radiator was �45, the water pump about �25, thermostat �3, and the hoses are just a few pounds (although I fitted armoured top and bottom hoses which I bought on-line for �15 each).
I've always kept everything new on my car as all Golf parts are available, very cheap and as simple as a kiddie's Mechano set. You can do anything on them with a few basic tools. It costs about �45 for me to do a full service including new leads and I change the oil and filter every 2000 miles. In 2006 we drove down to Gibraltar and toured southern Spain and last year north France. The car has now done almost 250,000 miles and it's never let us down in 22 years. My fully comp. insurance is �120.
If you spend a few pounds and keep the car serviced and all parts fairly new then you'll have a very cheap and reliable car redgardo. Why spend the outrageous amounts of money these characterless modern Euroboxes seem to swallow? Not to mention that there's very little you can do on them yourself.