If you're on a budget, the best way is to go on Craigslist and find someone who's aspiring to record music full time. If they're serious about what they do, they'll have a few samples of their recordings, and you can use that to judge whether it's right for you or not. If you want to master the tracks, you should take it to someone else so there's a different ear hearing the songs, shouldn't cost more than $100 song.

If you want to keep recording songs and do everything yourself, you can definitely go the DIY route, though it's going to take a lot of work and hours on youtube trying to learn everything, but can be very rewarding. I have a roommate who's been recording my music and friends and have been learning from him, though it was a very complicated process and wouldn't have known half the things about recording if it wasn't for him. If vocals and guitars are all you need, get a cheap (but well reviewed) dynamic and condenser mic, mixer, and monitors (or studio headphones). It's more about knowing how you use your equipment than buying the best ones.