A lot of us don't have access to a gym, swimming pool or beach... if this is the case with you, as it is with me, you can try walking, yoga and a variety of other types of exercises that don't cost little or nothing. Yoga is one of the best for all around toning and there are plenty of versions that will help you lose weight, as well.
You can check out YouTube for tons of free videos on how to use smaller hand weights to tone the arms and back muscles, as well as videos on toning the thighs...
Walking will help tone the whole body...
A healthy diet with reasonable calories will help you lose weight.
I like swimming. It tones up everything and it's the lowest impact. But I've always liked Jazzercise too. You can follow along and do high or low impact.
Lifting weights is good but free weights you need to learn how to use. Sometimes it's easier to use the machines in the gym. There's usually a little chart at each machine showing the muscle group the machine is for, but when I'm in the gym I just do the whole circuit.
Sometimes it's cheaper to work out at the college. Some city's open high school gyms and pools at night.