Good recording equipment/software for youtube videos?

Hi I'm a singer/musician and I need some help with this since I'm not so smart when it comes to techy stuff. I have a dynamic shure mic and I have an XLR to 1/8 cable or whatever so I can plug it into my laptop and record my voice, but I cannot record instrumental tracks unless the music is right up to the mic which is difficult because that's where I'm singing into! How can I record my voice using this mic and also have an instrumental track? I use my webcam as a camera and the recording is through my dynamic mic. Should I use a different camera? Thanks for the help!