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To get the most out of your router, you are going to want a router table.  You may find yourself asking if you really need one - if you do, check this post out.​  It's one of those purchases that you won't truly understand how valuable it is until you have one.  Given the budget of $2,500, I'd suggest looking at the Bosch RA1171 ($150).  If you want to see our favorite tables along with write-ups, check them out here.

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.
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.
After years of digging down under router tables, lifting the entire unit up to change bits, and then fighting to get the plate flush again in the table, I chose to spend the money to pur­chase a router table, fence, and lift system. I did a thorough review of these systems, and chose the Canadian made Jessem Rout-R-Lift II kit. The system comes with a solid steel stand, a phenolic table, an adjustable extruded aluminum fence, and their base model lift system. For budget reasons, I did not choose the hefty Mast-R-Lift, but I am quite happy with the lighter Rout-R-Lift II. It will last me a couple of lifetimes, so it is the right system at the right price for me in my one-man shop. Hats off to Jessem for making a great lift at a very rea­sonable price in the middle of a tough economy. The table is durable, and flat. The direct drive lift is smooth and precise. I mated the lift system to a mid-sized model 690 Porter Cable router, which has a fixed speed, and enough power to do any­thing I need. The Jessem system uses a bayonet type mount for the table inserts, a nice touch that makes swapping the table insert quick and simple. As with all my machines, the router table is connected with the supplied dust port to my shop dust collection system with automated switching. 

The most common type of cedar used today is the Western Red variety. Western Red Cedar, as its name implies, has a reddish color to it. This type of wood is relatively soft, has a straight grain, and has wonderful aromatics. Western Red cedar is mostly used for outdoor projects such as furniture, decks, signs and exterior siding because it is naturally resistant to moisture and water corrosion. Cedar also makes for a great closet or chest for storing clothes and other fabrics because of its resistance to moisture. Cedar is moderately priced and can be stained to a variety of tones.
It's funny how some interests (or trades) got onto YouTube very early.  Woodworking has been popular on there since the video-sharing behemoth got started.  I suspect this is because the US has a strong tradition of TV shows about woodworking - two great examples being Norm Abram's New Yankee Workshop and Roy Underhill's Woodwright Shop.  With a plethora of channels available on cable, and a bigger population, broadcasters were able to air more niche, and thus detailed shows.   Over in the UK we had four channels, and so if something wasn't going to appeal to at least 5% of the population (or it was cultural) then it didn't stand a chance.  
The most commonly purchased claw hammer is the 20 oz. size. It’s heavy enough to easily drive nails but easily manipulated when pulling nails. While wooden handles are picturesque, they may not stand up to the strain if you have to pull a lot of nails. Hammers with a steel handle, or even fiberglass, will be stronger. However, these won’t absorb the vibrations from driving nails the way a hickory handle will. You’ll also need to make sure the fiberglass and metal handles have a rubberized grip for control and comfort. If you’re going to be driving a lot of nails, the wooden handled hammer will be better for reducing stress on your hand, and wrist, too.

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.
Just a little nitpick on the tape measure blurb. The hook should not be completely tight. It should move in and out about a 1/16th or the thickness of the hook. This way you get an accurate measurement whether you hook a part to measure or bump up to it. If you want more accurate measurements with a tape measure, “burn” an inch instead of hooking or bumping the part. Just line up what you want to measure with the 1″ mark and subtract that inch from the final measurement.

The next important hand tool for the woodworker is an accurate tape measure. Get a retractable one that is at least 25 feet long. Any longer than that, and you start having problems getting it to roll back up. Since measurements on large scale projects can be very susceptible to even the most minute measurement variations, you’ll want to make sure the “hook” or tab at the end of the is firmly attached, with no give. When they get loose, you’ll have as much as 1/8” variation in your measurements. This can add up to some severe accuracy problems in the long run.