Those two tools comprise the most basic power tools you need to start woodworking. In addition, you'll need some hand tools. A hammer is an obvious necessity, and can be bought cheaply. A tape measure is a must- have for marking out lengths. A ruler or straight edge is needed to turn your measurements into straight lines for cutting, and can be clamped to a work piece to use as a saw guide. Speaking of clamps, they are important for joining pieces together for gluing, screwing or nailing. Most woodworkers have a lot of them, and you'll never have as many as you need. For now, just buy a few 6-inch and 12-inch clamps and add more as you need them.
The circular saw is pretty much the first tool I grab for any project. You can use it for both rough cutting your lumber to get started on a project or making finish cuts before final assembly of your project. You can use it to make half lap joints and a variety of other joinery methods. While a table saw or stationary miter saw might make a certain task easier, it is hard to beat the cost, portability, and versatility of a circular saw. While most of these come with a blade, here is a good all-around blade that I use.
This is the one tool in the shop that provides the greatest opportunity to save money, if you are willing to purchase a well made, light duty machine, and take lighter cuts. In the past I have used General 14" planers that can hog off seri­ous cuts all day long. The problem is that these professional units cost over $5000, and they would crush my buddy as we haul them down the stairs (note: don’t be the guy on the bot­tom). After doing a fair amount of research, I purchased the Dewalt DW735 13" thick­ness planer. The unit came with a good manual, and was in a good state of tune. It is light enough for me to carry around the shop with­out excessive grunting, so that made it very simple to install. The planer has a sig­nificant internal fan-assisted chip ejection system. The chips are catapulted out of this planer, so have your dust collector running before you run stock through it. I now have to make more cuts at a lighter cut depth, but I saved about $4500, which makes my budget happy. The planer makes clean cuts, and has two speeds. I don’t see a reason for the two speeds for my type of work, but there is a faster feed rate should you choose to use it. Knife changing is simple and quick.

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Eastern Hemlock, the state tree of Pennsylvania, is a softwood that has a naturally light-reddish-brown color. Although Western Hemlock (sourced from the Pacific Northwest) is often used in furniture building due to its straight grain and finer texture, which sands to a silky, reflective smooth surface. Hemlock gives some hardwoods a run for their money in terms of durability and strength, but at a more approachable price point. Reclaimed Hemlock has made its way into local salvage yards in recent years, and is being utilized in all aspects of woodworking and furniture building.
The circular saw is pretty much the first tool I grab for any project. You can use it for both rough cutting your lumber to get started on a project or making finish cuts before final assembly of your project. You can use it to make half lap joints and a variety of other joinery methods. While a table saw or stationary miter saw might make a certain task easier, it is hard to beat the cost, portability, and versatility of a circular saw. While most of these come with a blade, here is a good all-around blade that I use.
I can't really give a great answer to your question - I'm still learning how to deal with woodworking on a limited budget myself, but I'm getting there. It's not always easy, but when I want something I can't afford, I am starting to remind myself more and more that someday my day will come when hopefully there will be more room in the budget for my woodworking hobby. I'm also hoping to start selling the occasional item within the next year to help bring in some extra money for woodworking related expenses.
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My first projects were making things from pallet boards. I cut the boards to size using my jig saw.  It’s not quite as good as using a miter saw, but it got me by for a while with sufficient results.  Even now that I have a miter saw, I still use my jig saw A LOT to make notches (like for my outdoor table), or fun designs (like these deer heads last Christmas).
Woodworking is a fun hobby, but can be expensive as well. With all the power tools, hand tools, shop setups and, of course, the wood, many people are turned off to woodworking because of the impact on their wallets. That doesn’t have to be the case though. With a little pre-planning and inside knowledge, you can set up a basic wood shop and start making your own items without breaking the bank.
All you need to get an edge on your hand tools and pocket knives is a 100/300 grit combo stone from your local hardware, even horrible fright. This shouldn't cost more than $10. Then go to the natural slate section of the home center or flooring store & find 3-4" natural slate tile that you can barely see the grains in. This should cost another $1 or so. This tile is roughly 800 grit. If you can't find natural tile in your area, you should be able to find an 'Arkansas' stone for <$5. If you can scare up some Chrome Oxide and a piece of leather (piece of cardboard or block of MDF also work) all the better. These three things will cost you $15 and get your edged tools sharp enough to take hair off your arm and chips of your lumber.
Check with Habitat for Humanity.  If they have a store you may find several good items such as a bench, bandsaw or etc.  When I retired and moved I donated  a complete shop full of woodworking power tools and hand tools to Habitat.  They sold them, I deducted them from my income tax.  Unfortunately I could not retire my desire to woodwork and at age 78 I built a shop and use only hand tools and a bandsaw.  Good exercise pushing  a LN #7.   Build yourself a solid bench with some southern pine with a moxon vise that can be built by hand.  Get some holddowns!
Wow that’s a lot of assuming and supposing :) no shop right? no tools right? a place to work and tools for under 3K right? . This ones easy buy a pocket knife, set in your living room and whittle . So far you have $20 spent for a pocket knife. You might need another $200 for a decent vacuum to clean up all the shavings you made in your living room.
Ron Paulk is an extremely likeable mystery and I think he deserves 10x more subscribers than he has. I'm convinced he's a secret millionaire - he has a workshop in what seems to be the 20-car garage of a multi-million dollar mansion - which he claims belongs to a friend and he's only using it temporarily while they sell the house.  I think it's been five years now that he's been there.  But anyway, Ron is mainly a finish carpentry contractor - that's things like baseboard, fireplaces, kitchen cabinets etc.  He is a master craftsman.  What makes him unique is his approach to working - he is all about being portable, mobile and lightweight.  Every year he seems to fit out a new van or trailer as a mobile woodshop.  I've built Ultimate Workbench, Chop Saw station and fitted out a van following his designs.  He introduced me to Festool, which was a costly mistake for me!  I've built a lot of his projects, and I learned a whole lot along the way.
Do you enjoy woodworking?  Do you have a budget that you have set aside just for your woodworking?  If you are not a millionaire, than more than likely you will have some sort of a budget.  Let me give you a little insight into why you are here and what you will find on this site.  Do you enjoy woodworking as a hobby, part-time job or side job, or a full time job?  Or maybe you are wanting to turn your hobby into a full time job.  If that sounds like you than  your in the right place.
I moved back to my small hometown just a few years later.  Had a stable income, now with my own home with a shop.  That’s were I started getting back into woodworking.  I have been doing it now on a steady basis for the last ten years or so.  I do it just for a hobby, but I enjoy doing it to pass the time or to try and make a new piece of furniture.
While I am admittedly still new to the wonderful world of woodworking, I can't help but feel that one of the contributing issues/factors responsible for my prolonged progress in starting/finishing projects is how I've become accustomed (more like "trained") - fortunately or unfortunately, depending how you look at it - to work within a financial budget.
The fourth most important basic handheld power tool every beginner should buy is a random orbital sander. While palm sanders are less expensive and can use plain sandpaper (cut into one-fourth sections), the random orbital version uses hook-and-loop fastened sanding disks, and doesn't sand in patterns, using instead a random sanding motion. This will motion will serve to reduce the chance that any sanding marks may appear on the stock due to the sanding. Of course, be certain that your local woodworking supplier has sanding disks readily available in a number of grits to fit the model that you choose, as the key to proper sanding is to use progressively finer grits as you sand to reduce or remove any marks that are left behind from the previous sanding.
Ok, the leap from $1,000 to $2,500 is a big one.  I certainly didn't make it at one time.  It took me years.  But I know folks that decided they wanted to get into woodworking and dropped at least $2,500 getting themselves outfitted.  When you do make the jump, the thought process becomes much less about making sure you can get the job done and becomes more about having quality tools to get the job done. 

That headline struck me as discouraging. As an entry fee, $5,000 seems high enough to exclude a number of potential woodworkers, myself included. Christiana softened the blow by saying that used tools could cut the cost roughly in half. That figure seemed much closer to my experience, which involved buying a mix of new and used tools. Having said that, buying the right used tools is much more difficult than buying from a catalog or dealer who stocks everything needed to build a great shop. It requires a bit of guile and a good plan, but the payoff is worth it. Through careful choices and good fortune, I was able to outfit my shop with a blend of new and used tools for around $2,000.
Teak is an excellent choice, the “crème de la crème”, for fine outdoor furniture. Teak is highly weather-resistant by nature, which means that it does not have to be weatherproofed when used outdoors – although it often is finished and stained for aesthetic purposes. Teak is one of the most expensive exotic hardwoods there are, but it will look absolutely beautiful and maintain its integrity over time.
My contention has always been that you can build a serviceable shop in your home, develop your hand skills, and make fine furniture. In the past year, I had an opportunity to build a shop from the ground up after moving to a new home. I found a house with an unfinished basement, and set to work. In this article, I will discuss everything from layout, to electrical, to equipment selection. I intend to name names with respect to equipment, so that readers will know what I chose. Everyone’s budget will be different, but I think almost everyone will be able to treat this as a starting point, and adjust accordingly, depending on their own budget.
Turn leftover wood or old pieces of furniture into DIY reclaimed wood projects! Wood is one of my favorite materials to work with. The possibilities are endless and they give such a homey and cozy feel to any rustic home. My husband, Dave, and I sometimes even go the extra mile and carve our initials on a little spot. It’s our own way of making our DIY project even more personal! Here’s a list of some of our favorite DIY reclaimed wood projects!   
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