I too don't have a lot of money to spend so here is what I did, probably the cheapest way to go.
1. I went to Daddy's and bought a
SHURE PG58 Vocal Microphone with XLR to 1/4 Inch Cable brand new for $65 (Click here to go to this products page
and all its plugins FREE. Here is the link: http://audacity.sourceforge.net/download/
3. I bought a used ALESIS MICROVERB III
$50 at Daddy's Junky Music
4. The ALESIS MICROVERB III is nice because it connects to your PC/ Laptop and to your MIC so you can put some reverb or any other effects to your voice while your recording. AUDACITY really doesn't have a very good reverb option. The MICROVERB also connects to my 4 channel head which powers my PA for live vocal effects.
5. I am in a band now, but before I was I did everything myself including all the instruments.....I don't know how to play any instrument, how did I do it? Easy I found JAMSTUDIO.com
I signed up I think its $60 per year and I write all my songs on their website. Once I am finished I download the song as an MP3 to my desktop, then drag and drop the MP3 file into my AUDACITY and record the lyrics.
You can listen to the songs I wrote, recorded, arranged and produced at http://reverbnation.com/johnnystraws
You don't have to sign up to listen to my music, you can actually download my songs for free too.
So I paid a total of $175
to get started....providing you have a computer/ laptop. I use my HP PRO-BOOK i5. Then of course I pay the $60 per year to JAMSTUDIO.com they even copyright every song you create using their site.
If you have any questions feel free to contact me.