I just bought a cheap guitar to learn on, the only reason is so i can play the music while i sing. But i also want to learn to play in general. So from scratch, what is the best way to learn to play without paying for lessons. I hear people say "I taught myself by ear" What does that mean and how do i do it? 
Self-taught and lessons. You can try websites
Self-taught by ear is when you have the ability to learn just by listening. It takes a lot of practice and can be incredibly frustrating. the key with it is patience and making sure you keep your ears healthy and frequently have them checked with your doctor.
Lessons online:
http://www.zentao.com/guitar/guitar-lessons.html
http://www.songsterr.com/