I haven't spent any money on learning materials at all (except for recently when I wanted to delve into music theory) and I've been playing about 10 months now. using only the internet to learn. and nowadays everybody tells me that I'm a good guitarist, so, I say save your money and check out these sites:
http://www.guitarforbeginners.com/ - good website for beginners
http://www.blackbeltguitar.com/ - lessons
http://www.guitartips.com.au/ - sign up for the newsletter
http://www.guitarnoise.com/ - guitar lessons
http://www.guitarlessonworld.com/ - guitar lessons and excersises
http://www.betterguitar.com/ - lessons, and also information about equipment
http://www.guitarprinciples.com/ - guitar technique, just sign up for the newsletter, and browse the free stuff that they have
http://www.prolobe.com/ - online ear training, you need to sign up, but it's free
http://www.musictheory.net/ - music theory
http://www.looknohands.com/ - good way to learn chords and scales
http://www.riffinteractive.com/ - best website for learning the basics, but, you need to buy the cd's, however, you can just open up the sample, play the music or videos until it says you aren't allowed to any more in the sample, close the window, and open it again, and look at the next videos or files, continue till you've gotten the whole lesson
also, be sure to look around this site