Choose the right computer. While most modern desktops can handle basic music production, you will want at least a dual core processor to handle the rendering of large audio files. You can purchase a used or refurbished computer at a discount, or just use the computer you have now and understand that smaller processors will require more care and patience for audio editing.
Install an all-in-one digital audio workstation on your PC. The software should include multi-tracking (the ability to record different instruments and voices one layer at a time) and basic editing and effects features. You can purchase a cheap program like GarageBand, MixCraft or Cakewalk Home Studio, or you can download a free editor online.
Purchase a USB guitar cable. While a professional audio interface is typically recommended for connecting instruments to a computer, these devices can cost several hundred dollars. By contrast, you can purchase a USB guitar cable for very little money, and it allows you to connect not only guitars, but any instrument that uses standard 1/4-inch audio cables, such as keyboards, analog synthesizers, basses and certain microphones.
Purchase an XLR microphone and a USB-to-XLR adapter. A professional vocal microphone is absolutely essential for vocal recordings, but you need not shell out hundreds of dollars for major brands. Electronics supply stores often sell their own high-quality vocal mics at a fraction of the cost. An XLR adapter will allow you to plug the mic directly into your computer's USB port, eliminating most white noise for crystal clear quality.
Plug an inexpensive pair of monitor headphones into your computer's line-in port. When editing music, you need to hear the music as clearly as possible and monitor headphones can give you the best perspective.
Arrange your musical instruments in the recording area for easy access. If you do not already have the necessary instruments for the type of music you want to record, consider visiting pawn shops, online auction sites and outlet stores for discounted equipment.