If you want to record and release your own disc, you probably want to spend the cash to do it right. There are bands who do it on a shoestring budget and get great results. Make sure your fans would buy it in that form if you chose this route. Because I've met a lot of bands who did this, had a reasonable amount of success with it, and then came back saying they had a chance to get some radio airplay, but the station didn't think it was radio quality. Still, an album can be done on a modest budget these days.
Planning is the key.
This works best for punk bands, but even then, it's not a bad idea to overdub the vocals and lead guitar. A reasonable and cost effective way to record is to cut the drummer and bass player together, with the bass lined in as opposed to having a miked cabinet. You can have the guitarist lined in, too, and either use his tracks or overdub them later. And the singer can even cut a scratch vocal at the same time. This gives you the essence of playing live, but with the cleanest tracks and greatest flexibility when mix time comes.