I’m really poor. I’ve been making music. Here’s how I did it:
I used a Dell laptop (£500) with Ableton Live 9 Intro (£55, bought during a 20% off sale) and Ignite (free with my MIDI keyboard).
I connected electric guitars/mics to my computer via a Focusrite Scarlett 2i2 audio interface (£120). For some songs I plugged my guitar (a lefty Epiphone Dot) straight into the audio interface; at times I also used an effects pedal (a Boss CH-1 chorus pedal or a Digitech DF-7 distortion pedal).
I recorded my ancient Yamaha C40 classical guitar using a Rode M3 condenser microphone (£69). I also used an M-Audio Keystation Mini 32 MIDI keyboard (£34). The keyboard was really useful for writing MIDI bass guitar parts.
I listened to everything through an old pair of headphones with a frustratingly high bass response, and a pair of generic smartphone headphones.
The things that don’t have a price were bought too long ago for me to remember the cost. I like to think that even though I bought all the cheapest things, I’ve had some really good results from them!