Well, given that most people still use Windows, VB-Audio software mixer and virtual soundcard plus Cantabile as effect host together work exceedingly well.

And cost nothing or very little. (But do support the authors.)

Hardware has ease of setup and excellent knobs going for it, but if you're going for cheap, you should spend money on a condenser microphone, some mounting hardware (e.g. gooseneck, spider mount, maybe pop filter) and audio interface first.

$200 put there makes for professional quality audio. t.bone SC 400 and an interface that does phantom power, like one of the cheaper Focusrite or Presonus ones. (If you feel extra cheap, you can go lower price on interfaces but it's not worth it.)