Select a room in your home that is suitable for an in-home studio. Avoid picking a large, echoey room. A small room or even a walk-in closet will usually suffice.
Cover the floor with carpet to reduce the amount of echo in the room. The carpet job doesn't have to be professionally done, nor does it necessarily need to be picturesque. Many home furnishing stores sell carpet ends at a discounted price; save money by using this type of carpet to furnish your studio.
Line the walls of the room with a soundproofing material such as brown sound board. Affix this material directly to the drywall in the room with screws or nails, covering as much of the walls as possible. Soundproofing the room may not be necessary: if you live alone in a quiet neighborhood, you can forgo the full soundproofing process, and hang sheets or drapes along the room's walls to prevent echoes instead.
Set up the recording and equipment that you need to produce your podcast. This equipment includes a computer, large monitor, and a microphone with a stand and cover. Depending on your personal preference, you can use a full-size mounted microphone or a lapel mic. If using a mounted mic, attach a pop filter in front of the mic to keep your enunciation levels consistent. Install the mixing board in the room. If you produce the entire podcast yourself, keep the mixing board within arm's reach; if someone else is engineering your session, place it to the side of the microphone. Include headphones to wear during the recording; if you opt for corded headphones instead of a cordless model, make sure the cord is long enough that you can sit comfortably.