The main idea is to work on your skill as a musician. If you are good, there is always room for improvement. On a side, start recording your tunes/songs. Instrumentals would probably be a good place to start since you probably can get a good signal to noise ratio even with inexpensive equipment and spending nearly nothing on your room. Just make sure you get a nice strong signal.
Don't expect phenomenal results. Perhaps approach it with a "just need to get my tunes on cd so they don't get lost" type of attitude. As you will start recording tune after tune, you will begin to learn things about recording you didn't think about before. You will slowly start to grow and develop in knowledge and know-how.
Some time later (perhaps a year or so. depending how much time you'd be spending on recording), you will feel that you may need to upgrade and will probably understand why. You probably may have a good idea of what you need too...
Anyways, back to the basics - just start recording.