First, let's dump that hand powered saw/miter box.  It gets the job done, but it takes forever.  We're still on a lean budget, but shelling out ~$110 for a 10 inch electric miter saw makes a lot of sense.  This won't be your forever saw, but it should do fine for most projects.  It can handle up to a 4x6 stock which will cover 99% of what a beginning wood worker will throw at it.  
After you have chosen the perfect table saw for your wood shop, the next major purchase one should consider would be a compound miter saw. While not as expensive as a quality table saw, a compound miter saw is invaluable for cutting compound angles (beveled, mitered and combination cuts) on the ends of a piece of stock. Once you develop your ability to make precise cuts with a compound miter saw, you'll find that your circular saw spends a little more time in the drawer than it used to.
​In order to excel you are going to need to read up on jig building so that you can produce consistent repeatable cuts.  Ideas for jigs are a dime a dozen online and you could easily lose a couple of hours browsing the hundreds of ideas people think up.  A more economical approach would be to build your jigs as your projects demand them.  After you go through that exercise 4-5 times, you'll find you've accumulated quite the collection of jigs without even trying.
One subject that a woodworker must always consider when building a project is how seasonal moisture and temperature fluctuations will cause expansion and contraction of the wood stock in the assembled project. For instance, if you've ever experienced a drawer that sticks only in the winter time, you've experienced seasonal movement of wood. Since each wood species is affected by these temperature and moisture fluctuations, you'll need to know a bit about the climate where the project will be used, and how your chosen wood stock is affected by the climate changes. Again, your local woodworking supplier can be a great resource for answering these types of questions in your area.
If you'd like to learn more about the differences between hardwood species, I can think of no better resource than R. Bruce Hoadley's 1980 masterpiece, Understanding Wood: A Craftsman's Guide to Wood Technology. Not only does Hoadley detail nearly every species used for woodworking, he does an exceptional job at describing how to prepare, work with and finish these hardwoods. This is an industry-standard resource, one that I'd highly recommend to every woodworker.
Assume that there aren’t any decent tools on craigslist or at garage sales, and keep in mind that I have absolutely no tools, dust collection, shop-vac, clamps, sanding & painting accessories, tables, materials to build my own tables/stands/jigs, or anything else—not even safety gear (you’re such a good buddy that you even let me borrow your extra set of goggles and your earmuffs when I used to come over).
I cannot think of a project that the orbital sander was not used. Whether painting, staining, or just applying a clear finish, you will want to sand to some level to smooth out the wood. Even when using barn-wood or reclaimed wood, I often at least sand the edges to get rid of sharp edges and revel some of the underlying fresh wood. I usually have about 4 or 5 different grit sandpaper on hand for my orbital sander, here is my favorite brand.

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!   


All in all, for whatever reason it is that you enjoy woodworking, then you always need to follow that passion.  There is always going to be obstacles to overcome, whether that be not enough money to buy your tools, or space to put those tools, or time to enjoy woodworking.  That is something that every person has to overcome.  Everybody has there own unique obstacles.
The next hand tool every woodworker should have is a nail set. In fact, you should have several sizes. They look like awls, and you use them to drive nail heads into the wood so they are flush or right below the surface. This allows you to fill the holes and prepare for staining or painting. The nail setter will usually have either a convex or concave surface to grip the nail better and keep it from sliding off and marring the wood.
The thickness planer can joint a board's face. On this simple jig, the stock is supported by twin rows of wood screws driven into a platform and adjusted to meet the varying clearances on the underside of the board. The stock rides the sled cup side up. Slide the board slightly sideways to adjust the screws, then seat it firmly on the screw heads for planing.
I place the band saw first in my order of purchases, because I consider it the heart of the shop. Band saws are very safe tools for ripping, re-sawing, cutting curves and more because all of the force is downward, virtually eliminating any chance of unexpected kickbacks. I wanted a saw that had a strong back, dynamically balanced cast iron wheels for smooth operation and flywheel effect, 12" depth of cut, good dust extraction design, a large table and a solid fence. After shopping around, I settled on the General International Model 90-170 14" saw. It is very smooth, comes with an Excalibur fence, and it is light enough (133kg) to move into your basement without crushing someone.
These YouTube videos provide great woodworking information that contains both traditional and modern methods. Each instructional video contains woodworking how to techniques to improve a woodworkers’ skills and also methods for how to work safe in the shop. If you want entertainment, then watch the video once. If you want learn, watch the again. If you want to master techniques and improve your woodworking skills, watch and study the videos repeatedly.
These how to videos and articles of information are dedicated to my woodworking instructor who trained me during my apprenticeship. This body of work is also in honor of the journeyman who were generous in sharing their woodworking knowledge and skills with me throughout my long career. All of you have helped me to make a wonderful living  in a great craft. My hat is off to all of you.
Finally, at the beginning you'll do just fine with a basic set of router bits that run ~$40.  A starter set will typically include straight bits for edge matching material, a selection of edge finishing bits, and some joinery bits.  As you work on a few projects you may find that more specialized bits are needed.   But specialized bits are expensive - so purchasing them as you have a specific need makes more sense than buying in anticipation of a need.
The best advise I can give you is to get and read the book "Hand Tool Essentials" by the staff of Popular Woodworking before buying any tools.  It is sort of an inexpensive crash course in hand tools.  Chris Schwarz's book "The Anachrist's Toolchest" is another good source of information on handtools that I found to be a fun read.  Use the internet to learn all you can about a tool before buying.  The tools you need are dictated by what you want to build.
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