I’ve been really vocal about the fact that starting a home pc recording studio is much faster and much cheaper than most people realize.  In fact, I say you should start out, especially if you’re new to recording, spending no more than $5.00 or so.  Why?
Well, first of all…because you CAN.  Secondly, when you learn just how good the audio from a studio like that can be, imagine what it could sound like at the next level up!  That first jump will cost you only around $25.00.  Then you learn a bit more, and max out the audio quality at THAT level, discovering in the process once again that audio quality is more about technique and know-how than about expensive equipment.
At some point along this process, you’ll find the right audio quality for your particular needs.  For many, it will be a set-up costing somewhere between $5.00 and $100.00.  Others may want more capability and will find their stopping-point at a higher budget level.
The result of following a process lie this is that you ultimately produce exactly the audio quality necessary for you needs without spending money on features and gear that you don’t need.  A common mistake recording beginners make is to buy hundreds (or even thousands) of dollars in gear and software, only to find that their recordings just aren’t that great.  Sometimes these folks think “maybe I need THAT microphone, or THAT software, to get the audio quality I need.  But again, they find their audio didn’t really improve.  Eventually these folks are likely to give up on the whole thing, thousands of dollars to the bad.
Starting out with the cheapest gear, however, and squeezing every last drop of audio quality from it before moving on to the next level and doing the same, will both save you money AND improve your odds of producing great audio.  It’s a win-win!
If you are convinced, you may be asking how you get the knowledge needed to follow a process like that.  Fortunately there are a LOT of tutorials out there on the web for home recording.  Go to YouTube and type “home recording” in, and you’ll see.  Of course I am partial to our tutorials at Home Brew Audio;).  Our tutorial videos are both entertaining and informative.  And we add new ones all the time.
Whatever source of knowledge you decide to use, starting out “bare-bones” and adding just what you need when you need it is the fastest way to produce quality audio for the least amount of money.  And who would argue against something like that?