While many just go through the test questions and answers until they are basically memorized & then go take the tests.
OK - so you pass the tests but what did you learn? In one word - Nothing.
I know some that did this over a year ago and are just getting the hang of it. You miss the basics of Antennas, Propagation and how things just work. But while the books say certain things are certain ways - you will find that is variable out in the wild.
Get the Study Guides for each License. Tech, General, Extra. Just like in school - read them and highlight - then go back and re-read it again paying more attention to what you highlighted.
If you have any knowledge of electronics & electricity it will start to sink in quick.
It will take you about a week or 2 to really get a base of how things work for each licence - Extra may take a bit longer.
Read the Tech & General one after the other as the are very inter-related and try to get both tests done in the same day.
Do a re-scan of the books before you take the tests - and use the online practice tests till you feel good.
You will do fine. Most Radio Clubs offer the tests - do a google for ham clubs in your area - and it should be on there site someplace.
Radios - No need to buy new. There are plenty of great used radios on the market to get. Most Hams take good care of there radios - and many just buy the latest to have fun and then sell them.
You could get a All band HF-VHF/UHF radio Used for around $500 to 700 depending on what you get.
Good 100 watt radios to look for:
Yaesu FT-857 D or Non D - the D gets you the 60m band pre-programed.
Yaesu FT-897 D or Non D
Yaesu FT-100D
ICOM 706 MKIIG - there are a few variations on this model.
Kenwood TS-50 - HF Only, no vhf/uhf - but still a very good rig
Antenna
Build a multi-band dipole fro about $70 or less depending on what you have or buy.
Antenna Tuner
Depending on what radio you get LDG make some great small portable tuners - I have 2 and have no issues. These run around $150 to 200 for what you will need.
So for about $700 to 900 give or take - it all depends on what you can find used.
http://www.eham.net/
http://www.qrz.com/index.html
http://www.ebay.com
And most Ham stores also have used gear.
http://www.hamradio.com/
http://www.aesham.com/
http://www.hamcity.com/default.asp
http://www.radioinc.com/
http://www.universal-radio.com/
http://www.associatedradio.com/
That should be a start. Also if you have a Radio Store near by, go check it out - good way to see and get hooked.