Register a Domain
The first step in setting up your own website is the registration of a domain name (www.namehere.org). Domain names are usually registered to an individual for a full year. Prices range and vary depending on the registrar, and the domain name extension (e.g., ".org").
About Extensions
.Com extensions usually signify a commercial website where one is trying to sell a product or service. .Org sites are typically for organization web sites and are usually purchased to display information about the organization. .Net extensions are normally for networking sites which serve as a portal to other websites/places on the internet.
There are other extensions that have different meanings as well, but the above mentioned are the most common. Keep each extension's meaning in mind when you choose your domain name. Some people choose the extension based on how it "sounds" with the rest of the domain name. It's a matter of personal opinion.
Purchase Hosting Plan
The second step is to purchase hosting for your new domain. Again, prices vary depending on the amount of space you want as well as the company you go with. If you have your own server with hosting space, you're all set.
Reseller hosting is for those looking to re-sell the space they are paying for. Dedicated servers are for huge businesses that need all the space they can get. Shared hosting plans are for personal web sites, or small businesses where lots of space isn't really needed.
When first starting out, I'd recommend starting from the bottom and working your way up the hosting plan ladder. Shared hosting plans are usually cheap, and affordable for those just starting out.
My Recommendations
I would recommend iPower.com for your domain registration. I paid only $6.50 to register this domain. For my hosting, I am currently hosted by SurpassHosting.com, and I am using the Shared Hosting Power Plan, for a price of $6.00/mo. To setup this domain it cost me only $13.95. Cheap, huh? Purchasing your own website doesn't HAVE to be expensive!
I'd suggest doing some research to see what kind of deals you may find before making any type of purchase. :)
What is FTP?
FTP stands for File Transfer Protocol. You can read an extensive detailed description of what FTP is by clicking here.
What programs do you use?
The programs I use are pretty expensive, I won't lie. Most of the manufacturers offer trial periods on the software. I'll provide links to the manufacturers websites. I'm constantly experimenting with new programs, but among my most used are:
Jasc Paint Shop Pro 7.0 - graphic design (has since changed to Corel Paint Shop Pro, look on Amazon for 7.0)