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If I could go back in time when I started playing, here's what I'd do:
1. Make sure you practice/play with the same set consistently. Don't rent (at the cheaper courses the rental clubs are usually junk and overpriced). Borrowing works if you are lucky enough to always use that set all the them whenever you play. If that's not possible, then I suggest buying a set. It doesn't have to be expensive to start. There are starter sets available for a few hundred or you can buy something used online. But either way, you want consistency and need to get used to the clubs that you have.
2. Take lessons to start. It's the best investment you'll ever make. You can take lessons at your local driving range and it's not that expensive. Most people choose to start by learning on their own or getting tips from friends and that's how bad habits start from day one and once you get used to them, it is very challenging to change your swing. A lesson will teach you all those important things from the start (grip, stance, etc) that nobody will show you and it's near impossible to learn by reading.
Pitch and putt is a great way to practice. Whether you're hitting driver or 9 iron, the fundamentals of a golf swing are the same. So the better you are at pitch and putt, the better you'll be on a full course.
I agree with the previous poster, you should go play the big courses with your friends who know golf etiquette. They will help you practice without holding up other groups. Your first few times out, don't worry about trying to play a whole round. Just hit the ball and use the opportunity to practice and don't worry about picking up the ball if you have to. If the ball lands in the rough, who cares, just kick out to the fairway. Think of it as practice and let your friends worry about their own scores. Soon enough you'll want to start following the rules and keeping your own score.
Golf can be pricey but I find its similar to many other recreational activities or hobbies whether it's snowboarding, cars, hockey, etc. But keep in mind that anything you buy will last you many many years.
Eventually you'll love it and will want to invest. Here are some ballpark budgets for decent stuff on sale.
Irons - $450 -$600
Driver - $100 - $150
Putter $100 - $125
Bag $75 - $100
Glove $15 - $20
Balls $20 - $40
Tees $2
Shoes $100 - $150
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