Today I'll be telling you what you need to set up a home studio on a budget. We'll start off with the computer. You can either go with a laptop or standard, most people should have one already. Next you'll need a sound card, you can go either external for laptop or internal for desktop, both are very cheap these days. I would recommend you go to www.maudio.com. They carry good quality equipment at a good price.
Next well look at microphones. Now you can get a standard stage mic, everyone goes with the Shure SM58 (my first mic was a Shure Sm78) for that. Should be around $100.00. If you can afford one or two more, it is really worth it to get whats called a 'condenser' microphone, all the major studios have one. That will improve your sound dramatically!
Now if you want to make beats, I would also recommend going to m-audio and getting whats called a midi keyboard. You can get one for a couple hundred, then link it with a program like Pro-Tools and trigger sounds that way.
Now for recording software. Of course you've heard everyone and their homies has Pro-Tools. They now have an Mbox you can get for a few hundred. Pro-Tools is so cheap now. I would highly recommend that. (Even though I personally have used Adobe Audition since it was Cool Edit 96!)
You can build up how you want as your budget allows from this point, such as monitors, a better keyboard like a Triton or XP, an MPC is also a must, mix board and turntable(s)...
You REALLY can set up a good sounding studio for under $500.
So get your music career started, what are you waiting for!!!