The wattage is not as important as the speaker size and quality of the electronics. Unless you're playing public venues, 100 watts is probably overkill for most of us. 50 to 60 amps is more than sufficient for indoor use. A 12" speaker is probably the best compromise. A 15" isn't necessary unless you're playing in public and/or LOVE playing the low end, but of course they cost more.
A very nice feature to have is REVERB. I'm sure most people here would agree.
Don't forget, you don't HAVE to buy new equipment. If you're patient, you can often find a good deal within a reasonable driving distance on Craigslist (unless you really live way out in the sticks). A decent pawn shop will have a variety of equipment although not always top-of-the-line, and you may have to haggle over the price to make it reasonable. Remember, pawn shops will also give you (some) cash for any other items you're really not using.