There is nothing that gets the creative juices going than to be able to record your own stuff. I don't know what you intend to spend but there are a ton of inexpensive (and expensive) home recording setups.
You can go computer-based recording setups (with this you need an external audio interface to plug the guitar or other audio devices in to the computer):
- Mac comes with Garage Band
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Cubase (I use this for recording, but it can be pretty expensive)
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Cakewalk is a fairly affordable program
- I have the
Presonus FireStudio Mobile external Audio interface. It's bundled free with 'Studio One', which is recording studio software and has all sorts of add-ons and effects (like echo, reverb, etc...)
Or you can go with a portable digital multi-track recording studio:
Digital Multitrack Recorders | Sweetwater.com
This is just a list of some things out there. Prices from about $150 on up. I wouldn't recommend buying from here though. Go to Hot Licks in Waldorf, or Chuck Levins in Silver Springs (my favorite place), or a Guitar Center store. You'll get things a lot cheaper there than online. Chuck Levins is very reasonable and will sometimes negotiate prices AND sells used stuff too.
With the multi-track recorders, these require external effects and devices that are normally built in to the software-based products.
I have a home recording studio rig set up and can tell you, with the digital technology out there you can make some very professional-sounding recordings and convert them to any audio format you want for burning to CD or adding to a MP3 player and uploading to websites like YouTube.