i think there is a demand now for a home-service PC recording consultant.
Ok. I say the honest first step of all is to know how much money are you willing to spend for your recording. If you can't be true with that, all suggestion and solutions would either be non-applicable or unrealistic. Then second would be, knowing your needs and the extent of what you want with your home recording. No need to buy gears that you won't use at all. Just focus on the simplest setup that would satisfy what kind of music that you want to create. That said let's go to the typical and fundamental hardware, which is already mentioned above.
Computer - Interface - Monitor speakers
I also suggest to budget for a professional recording software if you're serious about the music that you'll be creating. Back to the gear follows the other essential part in the signal chain
Microphone - Preamp - cables
And of course the instruments, which you probably already have. This includes amplifiers and accessories usually used together with. Mic stand, also important. There are a lot of other stuffs like outboard processors, midi-controllers, audio software, etc. that could give extra power and flexibility to your recording but that will come after you find the need of getting them.
Back to the basics, the first one that should be learned is picking the right audio interface for you. If you're a solo musician a 1 to 2 input USB interface would do good. If you're with a band and planning to make recordings an 8-channel and above size interface would fit your need. Browse them in their manufacturer's website so you can get an idea of its features and uses. Then browse them in internet shopping websites to get an idea how much they cost
. Remember to get an able powered computer for your recording. See the 'Setting your PC for recording thread' here in the MTPA section. For the monitors, you can use a good stereo speaker which you already have for a start. Though it's really important to get a Studio Reference since it will give a more accurate detail of your sound. Next will be learning how to use a Digital Audio Workstation (DAW) or simply, a recording software. There are free DAWs over the internet, some demo version are bundled when you buy your audio interface and there are full function DAW that can be bought in disk format in our local music shops. Don't be intimidated by these sofwares. If you're really into recording, learning and knowing how to use them can be really, absolutely and creatively FUN!!!
That's all for now. I think that covers a primer in modern home recording which is computer based of course. I have so much free time today at work.