should i reduce my BF?

ok so ive been working out for a couple of weeks
but ive been told maybe i should reduce my fat to get more cut, then see about gainin muscle or not.

im a carpenter so i had already a tiny base to work with.
in 3 weeks i triple my amout of push ups(20-65)
i can feel a difference and see one in my peck size.(i use to be completly flat like a floor). even my girlfriend thinks so.

but now i wana see if i should cut before. what do you guys think? any suggestions?
i mean i dont have a gym pass and all that, i do my stuff at home with push ups, chin ups, sit ups, and all thos, nothing fancy rly. so if i start doing cardio then its gonna have to be jogging, or bikiing, or runing. what is the best?

and well for the diet part... its kinda hard but i cant rly go on a diet. (my parents are rly freaky about eating and ****.) but i know for breakfast and dinner i ahve rly healthy meals. its a lunch time that it goes off. should i cut the sugars and carbs by alot? and well im not a great meat eater so im tryin to get most protiens i can off nuts and what ever meat i get( 1 portion of meat per week! at the max) i can try to increase that if its what i need to do.

i dont want thos shakes and drinks please. im square broke i cant even affrod a gym pass so nvm the drinks.

so heres a picture to give you guys an idea. i mean we dont see to much but i can feel that theres alot under. i jsut dont have rly defined muscles

http://fr.tinypic.com/view.php?pic=316lwfo&s=3

my best friend never never ever worked out and he looks like hes a profesional swimmer... and god hes only a mechanics lol.




so any good advice or criticts will be greatly appreciated.

i have the will to work on it belive me.

by the way im 18 years old im about 160 lbs and 5 11

hey mate...get a gym membership simply doing pushups,situps etc wont really cut it. You need to reach your max in 8-12 reps etc
 
It's the best money you will ever spend. My advice, keep eating your same meals, Just add some more protien in..More meats,fish,snags etc
and buy some whey protien powder and watch yourself get big!!

You seems to have a good basis. Like Mad said, go to the gym, work hard with proper weight to do 8-12 reps sets. Check out to eat 1g of protein for each pound of your body and you'll get good result. You don't need to down your body fat, building some muscle will bring you what you want.
 
Good luck bro, and work hard.

well thanks for the replies. ill ask my folks for a bit of cash to get a membership xD