Just remember, you can have all the equipment in the world and it will still come out like shit, but the person that's behind the mixing board is what wil matter the most.
Here's a cheap way to get started, if Your old enough, take a MIDI clss at a local Community College. Learn somethin' there, or just pick up a book and realy learn the shit.
If you have a comp. Get a Program(most you can get off the Net (I)llegaly)
If you want start off with software synthesizers. And get a Controller Keyboard(I've seen some for like $100).
next get a USB MIDI Interface, and
a Soundcard to get audio in and out of your computer
Maybe get a small MIxer, The Behringer's are cheap, but they are good.
And get a Set of Good Headphones, the ones that cover up your ears, and have a flat frequency Response.
You don't have to get speakers right away, but the mixes will come out better.
Buy a Microphone if you're going to record and sound/Vocals.
You can probably get a Shure SM58 for about $100. Basically with that right there, you can make beats, record and mix audio. It's not professional top notch quality, but it'll get you started
Also Subscribe to magazines like Home Recording, Electronic Musician, Keyboard, they have some god tips in there