The trick is to use sandpaper. It’s a good quality abrasive material and is readily available. You’ll want a selection of different grits – low grits to get started, higher grits when finishing. The reason this is cheaper is that you can get a selection of 5-10 different sandpapers for under $20. Getting even a couple of decent sharpening stones wouldn’t be possible at that price. In the long run, they’ll last longer but this is a budget option we’re talking about.
I added an accessory mitre gauge to the saw for accurate cut-off work. The Incra Miter1000 showed up under the Christmas tree after the Lee Valley flyer photo with part number mysteriously ended up on the fridge door with a circle around it last December. A great addition, the Incra is light, accurate, and provides adjustable stops for cutting multiple parts to precise length. I will also make a plywood cut-off sled for the saw for squaring larger panels.
The next thing to look at was how to order the list. Probably the most obvious was subscriber count (which is how it is ordered), video count was also a possibility. One thing I was looking at, was the subscribers to video ratio. For example the Channel Inspire To Make has 101,000 subscribers, but when you realize that they only have 20 videos, the subscriber to video ratio is very impressive. I really do recommend you check it out as the videos really are very well made.
Second, it is easier to learn to use hand tools on a solid bench than on a Workmate or some other modern clamping sawhorse. The bench doesn't have to be expensive or large. A 20" by 5' top will get you started. Look at Chris Schwarz's second book on Workbenches "The Workbench Design Book" for ideas. If you are a good scrounger you can recycle framing lumber from building teardowns to build a good bench for next to nothing. A vise screw to make a leg vise is less than $60.
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.