We've written about routers on the site before and my favorite is the Bosch 1617​.  It is light enough that you can control it when using it handheld, yet powerful enough that it won't have any problems when you mount it under a table.  On top of that, it comes with a plunge base which makes it significantly easier to use handheld.  The package clocks in at ~$190.
A long-established channel with Italian-American woodworking geek Marc Spagnoli and his sidekick Nicole.   It's filled with great tutorials, guides, reviews and generally high quality content.  I'd described as aimed at an improving, and committed, woodworker - he uses fairly lots of clamps and glue, and shows in professional how to build quality pieces, generally of furniture.  I learned a huge amount from here, and it's easy bedtime viewing.  
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.

One of the best deals on portable power tools, including routers and sometimes planers, comes in the form of factory-reconditioned tools. These are primarily tools that have been repaired at the factory after failing quality inspections or being returned by customers. While they cannot be sold as new, they are identical to new tools in quality and appearance and usually feature the same warranty (be sure to check). Typical savings are anywhere from 15% to 30%, though you sometimes can find even bigger bargains. These tools can be found at Amazon.com and other online tool sellers. It is also possible to buy them through retail stores and, in some cases, directly from the manufacturer’s Web site.

Arbortech Turbo Plane – The turbo plane is more than 7 times the cost of the Bad Blade Carver, however The turbo plane is kind of a more refined animal.  It probably isn’t fair to compare the two. The Turbo Plane leaves a better finish and can be used in a different way,  but for bulk removal and heavy shaping, I think the Bad Blade Carver wins. If you want the scalloped and smooth surface, then the Turbo Plane wins.
As an x aerospace machinist I have run manual lathes and mills and programmed and run CNC as well. IMO a manual lathe is far more versatile and useful than a CNC for the average DIY buff. A CaN C is basically a very accurate production machine but to spend time programming, setting up, proving out just for a couple or several pieces is not practical ( unless you have money and time to spare)
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One of the most heavily used tools in your shop will be your table saw.  It is absolutely essential for ripping stock to size, working with composite material (like plywood and MDF), and venturing into the world of wood working jigs.  Budget is a limiting factor in a $500 build, but at $150 it is hard to pass up adding this Craftsman saw to your shop - even with limited funds.  
An assortment of chisels should be part of every workbench. Chisels are not just for wood carvers. Any woodworker will need chisels to clean out joints and saw cuts. Look for chisels made of high-alloy carbon steel or chromium-vanadium alloyed steel. Hardwood grips are best, especially if they have metal caps on them. This will keep the end of the handle from becoming malformed when you hammer on it.
You can find a project for just about every room in your home. Table scape trays make perfect platforms for dining room decoration. Wooden plaques offer a blank slate for any saying or picture you want. If you want a unique table, we’ve got a few options to consider. Headboards and benches can give your bedroom a real transformation. You can find anything you want among these DIY wood craft projects.
I taught (teach) several aspects of "green woodworking" and related subjects, so I love your question. The buying and using of old tools is great...no matter the source. However, I have seen much frustration ensue over getting them adjusted, and "work ready." As often a beginner with limited budgets, also have limited traditional skill sets as well in understanding these tools and sharpening them. You must be patient with yourself, as tuning these old tools up will be very time consuming. Sharpening (and the proper tools of sharpening) should be your first acquisition. So many folks buy chickens before building a proper "chicken coop." Traditional tools are the same way, as there is no reason to own them, if you can't keep them properly honed.
One of the challenges in building a cabinet for hand tools, is that as soon as you define a place for each tool in your custom cabinet, you find that you need more room to store the must have tools you just bought. I decided to make a couple of open cabinets, and employ the use of inserts that can be replaced or modified as my tool collection grows. Part of the goal was to make a clean, efficient shop, while keeping to a budget. I bought paint grade maple plywood and made the cabinets. Applying a solid maple face frame to the cabinet makes a clean looking cabinet from sheet goods purchased at $50/sheet.

The solution to potentially wedged boards on a jointer is to add a planer to the mix.  A planer has a flat surface with a cutting edge that is exactly 180 degrees to the surface.  This allows you to position the jointed edge flat on the planers surface and make a cut to the opposite side of the board that is perfectly square.  As an added bonus, the planer allows you incredible control over the thickness of the boards you're planing.  ​
I wouldn’t give up on Craigslist or garage sales.. For around $1K or less, you can pretty easily find the four big ticket items (TS, BS, Jointer and Planer) and have the extra $2K to spend on accessories, material, DC, other goodies, etc. The key is patience and persistence, and if applied correctly, you can have a fantastic setup for very little compared to purchasing new. If you are setting up a business, you don’t usually have the time to scour for good deals, but for a personal shop, there is no pressing need other than that itch to get something done.