I agree with all the advice you have gotten so far.
I also wanted to point out that no way are you going to find a breeding quality female for $500, especially in California. For that price you are looking at a puppy from a backyard breeder who is very far from the Yorkie standard and may carry genes for all sorts of health issues. Reputable breeders thoroughly test all dogs they breed and start with dogs who are close to the standard as possible. They have a considerable amount of money invested in their breeding program.
You need to take your time and save up enough money to purchase a quality Yorkie. You also need to have thousands of dollars in the bank to cover possible emergencies like c-sections and vet bills for puppies who may have a health issue in the first year or so. Responsible breeders have health guarantees. Should you produce a puppy with a liver shunt (and Yorkies are 36 times more likely to be born with one than all other breeds combined), the surgery to repair it is several thousand dollars. While you are saving your money, you can learn as much as possible about the breed by going to shows and interacting with responsible breeders.