Work out your budget. There are some essential purchases for building your own sound studio but the quality and price of every item can vary drastically. Calculate how much you can afford to spend on your sound studio and then prioritize which equipment you want to spend more on. You can always upgrade your equipment in the future.
Buy a decent computer. Apple Macs and Windows PCs are both fine--music software packages are available for both. Make sure the computer you select has the necessary hard drive space and RAM to work effectively with the music software package you purchase.
Choose a music software package. Gone is the need for lots of expensive hardware; one piece of computer software performs all of the same functions and more. Cakewalk Sonar studio recording software is a good option for PC, Apple Logic Pro for the Mac. Steinberg Cubase recording software can be used with both Macs and Windows.
Purchase an audio interface and a MIDI interface. MIDI--Musical Instrument Digital Interface--is the process allowing myriad musical input to be registered by a computer so that one person can create multi-part music on his own. MIDI does not record audio, though. It simply registers input and frequency in computer language. For those changes to be transferred back into audio, you need an audio interface, or mixer. If your budget is extremely tight, the sound card with your computer will perform the same function, but the quality of your recording will be severely affected.
Buy a microphone. The microphone is the most recognizable piece of equipment for your sound studio. As with the other equipment, quality varies drastically. There are mics available for a few dollars, others for a few thousand dollars. While it is not necessary to spend thousands of dollars you do need a decent microphone to ensure a crisp recording with no background interference being picked up.
Hook up all of your new equipment and you are ready to start using your sound studio. If you find there is still too much background noise in the room, it may be necessary to soundproof your sound studio. This is easily done by putting egg cartons and foam padding on the walls, and laying rubber matting underneath wooden floorboards. Start recording!