Download an audio recording program. You do not need to invest in expensive production. Just choose an inexpensive or free program such as Audacity, QTractor or Ardour. The more expensive software can actually put you at a disadvantage, because it often contains complicated production features that require time and expertise to learn.
Open the software and create a new project for your first song. Typically, you can create a new project by selecting (File > New) on the menu bar, although the option may also read "New Project" or "New File," depending on the software program you are using.
An audio interface such as Lexicon Alpha, which retail for about $60, will allow you to connect your electronic instruments through a USB cable to your computer. If you cannot afford the expense, you can connect analogue instruments to your computer's "Line-In" port. You just need a cable with a 1/4-inch plug (for your instrument) and a 1/8-inch plug (for your "Line-In" port).
Create an audio track for each instrument or vocal section that you plan to record. For example, if you need two layers of vocals, a guitar section and a drum section, you will need four tracks. Multi-tracking is the studio standard for recording music. To create new tracks, locate the "New Track" option, always found on the menu bar or tool bar. If your program does not support multi-tracking, you can record every instrument and voice simultaneously, but your quality will suffer. Try one of the programs suggested in step 1, or any program that offers multi-tracking capabilities.
Click on your first track (indicated by the words "Track 1" or "Audio 1") and the select the "Record" button. Begin recording your first instrument or voice. When you finish recording, press "Stop." Repeat this step for each additional track until you successfully record all of your parts. If you make a mistake along the way, just delete the recorded material and try again.
Add effects to your tracks. Select any track, open your "Effects" menu and choose effects appropriate for the tracks. For example, you might want to add "Reverb" to your vocals, "Echo" to your keyboards or "Distortion" to your guitars. If you cannot find your "Effects" menu, check your menu bar options. Sometimes you need to select the appropriate window. Some programs, such as Logic, feature effects on the "Mixer" window.
Adjust the volume and panning of your tracks. Move the "Volume" or "Level" slider on each track up or down to raise or lower the volume, and continue until all of the tracks blend naturally with one another. Use "Pan" to create a surround sound effect by moving specific tracks to the left or right. For example, you can move rhythm guitars into the right speaker and keyboards to the left. Just keep your bass and drums in the center for a balanced sound.
Save your finished project as a song file by exporting it as an uncompressed (WAV or AIFF) or compressed (MP3 or M4A) audio file. Locate the "Export" option on your menu bar and select it. Enter the song title in the appropriate box, choose a file format and click "Save."
Repeat steps 2 through 8 for each subsequent song on your CD. When you finish recording and exporting all of your songs, you can transfer them to a digital media program such as iTunes, Winamp or Windows Media Player and save them onto a playlist for CD burning.