I have currently spent $8 on recording to date. The $8 went towards buying a cable to connect my amp to my soundcard.
I got a 'free' copy of cool edit pro 2.0 and I've been using it ever since to create pretty fine recordings for the money I've spent.
I'm such a cheapskate, I just don't see myself spending thousands on home recording stuff, when I can create pretty much anything I want to for next to no money.
All you need is a guitar, an amp and a soundcard and then go find a program like cool edit pro (it's discontinued now, or so I believe)