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You may probably be thinking that in order to produce professional quality recordings from home,you are going to need a small fortrune or that an affordable studio will only produce a pleasing but not premier quality sound.
Your home recording studio can be built for a lot less than you imagine.

The budget starter studio:
This can be done entirely with software.: Mixers, sysnsthesisers,  effects processing and MIDI instruments can be realised by special software:

This is probably the most economical and simplest approach.
It can also serve as the foundation on which to build a more traditional studio.
The added benefits are that it takes up less space, is simple to use and it will be easier to upgrade or enhance.

To get started

A room
Monitoring speakers plus amplifier
Sequencer software, with virtual instruments and plug-in effects.
An optional music controller

The Computer  
Although being  the cetral unit of your studio at this point, it is not necessary to spend a great deal of resources on your computer.
The computer is quickly becoming if not already commoditzed and should is not where you should be focusing your resources.
Macs are usually the preferred choice, since they then to be to more adaptable to music applications.

Areas of focus:
You should strive to obtain the best audio quality, which means focusing on monitors and room acoustics.
The best audio quality can truly be judged by listening.
As a musician, your ear should be trained to detect sound quality, and you should be able to tell what you like by listening.
You can also tell technical quality by specifications, if your are so inclined, but judge the way your audience would by listening.

Software
Software is a great place to save by starting modestly. In expensive or even free software are capable of producing some amazing results when used properly.
A complete studio in a box, that includes sequencer, virtual instruments and plug-in effects may also be recommended as they are powerful, fun and easy to use.
Some type of music controller may be helpful for keyboard work. They can be used for transferring music to the controller, regardless of your keybaord skills level.

The upgrade from your starter studio to a more professional home recording studio will now be only a few components away as your needs and skills develop.
When handled by a skillful operator, your  home recording studio can produce some extraordinary results.

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