The level of sophistication in a $250 shop is significantly less than a $2,500 shop.  But keep in mind even a $2,500 budget is entry level.  Acquiring a shop full of the perfect tools for each and every job takes a life time.  But that doesn't mean that producing quality work takes a lifetime.  One of the most enjoyable aspects of this hobby is the constant need to solve problems in order to produce good work.
2. Just the basics—I’ve used a compound miter saw, circular saw, jigsaw, band saw, router, table saw, drill, finishing sander, belt sander, Dremel, oscillating multi-tool, bar clamps, and a Shop-Vac. I haven’t used a planer, jointer, or lathe. I’ve never owned a table saw but have used a circular saw or improvised with a router for a few long cuts. 

I went out and bought a dovetail pull saw for some of the finer cuts that I needed to make. I’m sure I’ve used this a few times on previous blog posts. It is great for the smaller cuts, and I’ve even used it to cut some larger pieces when my bigger saw didn’t fit. The combination of the dovetail pull saw and the push saw works fine, and isn’t too terribly expensive, but I’ve found something even cheaper that works just as well.

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.

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 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.

Can you outfit your shop with all the necessary hand tools for just $100? Christopher Schwarz says you can, and he’ll show you how to do it in this article. Take Christopher’s shopping list to the flea market and come back with everything you need for less than you’d spend on one new hand plane. You can do all your woodworking with hand tools, and this article from Popular Woodworking will equip you with everything you need.
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. 
Carpenters Builders Pencils 13pc Joiners Sharpener Soft-lead oval-section carpenters pencils for marking timber, brick, stone and other building materials. Draws thick or thin lines on both rough and smooth surfaces. Oval-shaped length means pencils do not roll away when placed on inclined surfaces. Includes 12 pencils and a sharpener. Pencils supplied are in BLUE.
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.

I have a stable income like a said earlier, but when it comes to having extra cash to just blow on a hobby, well I was never always that fortunate.  So when I wanted a new tool or even to just purchase lumber, I would have to save up until I could purchase it.  I know that sounds like most people, but it has taken me several years to just even get the basic tools of woodworking.
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.  

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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. 

Poplar is one of the less expensive hardwoods. It’s also fairly soft, considering it is a hardwood, which makes it easy to work with. Poplar is very light in color (almost “white”) with some green or brown streaks in the heartwood (the wood that comes from the center of the tree). Because poplar is not the most beautifully grained wood, it’s almost always painted as it does take to paint very nicely for a uniform finish. Poplar makes for great table bases (often painted, with a stained tabletop of a different wood), drawers, cabinets, hutches and more. Poplar is a very common wood that is versatile and cost efficient.
For woodworking entertainment and inspiration be sure to checkout our Woodworking Video Series "The Highland Woodworker". Improve your woodworking skills and learn more about the use of woodworking tools with free online woodworking materials in the Woodworking Library. At Highland Woodworking you get more than fine woodworking tools...you get fine tool tips too!
The type of wood you choose will determine the overall strength, look and cost of the finished piece. Many varieties of wood exist, and CZ Woodworking will work with each customer to determine what wood will fit your needs best. Each wood has its benefits and can be utilized in a number of different ways to create various looks within a project. Explore the various samples below to determine what might work best for you.
The Japanese style saw or Japan saw, depending on who you ask, can easily replace both the push saw and the dovetail pull saw for most of your needs. This is why I included the Japanese style saw in my woodworking budget starter kit. If I was starting over, and just going to buy one saw, this would be the one. I purchased an Irwin, but there are several other brands out there. I just found this one to be the best value at the time I was shopping.
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.
One of the great furniture woods, Mahogany has a reddish-brown to deep-red tint, a straight grain, medium texture and is moderately hard. It takes stain very well, but looks great with even just a few coats of oil on it. For an even more distinguished look, exotic African Ribbon-Striped Mahogany adds amazing grain and texture elements to this already beautiful species of wood.

This post speaks right to the heart of frugal woodworking. The woodworker addresses how to make a dye from tea and alcohol that is fast drying and will not raise the grain of your wood. Technically I guess it is both a stain and a dye since since the tannins in the tea will actually change the color of the wood, and the other colors in the tea act more like a stain. Either way it is a great idea.
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).
Non-Standard Miter Slots - This one is a downer.  One of the primary advantages of having a table saw is access to jigs that expand the saws functionality.  This is a major issue if you plan on buying after market jigs.  Given that we are limiting the cost of this buildout to $500, I am guessing that after market jigs are probably low on the priority list.  Your going to want jigs once you start researching what they enable you to do, my advice is to build your own - there are plenty of plans online.  
The last tool I recommend for every beginning woodworker is a quality router. While many routers available today offer two different bases (a stationary base and a plunge router base), for most beginners, a quality stationary base model will take care of quite a number of tasks, and can also be mounted in a router table should you choose to invest in (or even build one) one down the line. Choose a router model that is at least 2-HP and has electronic variable speed controls (as larger cutting bits should use slower speeds), a soft start mechanism and is easy to make bit changes (preferably with the ability to use both 1/2-inch and 1/4-inch shank router bits).
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.
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.

Through my cabinet-shop connections, I managed a snappy deal ($200) on a used cabinet saw with a 54-in. commercial rip fence. That price would be hard to match, but it is possible to find a hybrid or used cabinet saw with a high-quality fence for $600 to $1,200. Some of them will run on 120v household current, meaning you won’t have to rewire your shop for 240v service, but be sure to check for compatibility before you buy.
On the 100/300 grit combo stone: absolutely, positively NO – and I’m a woodworker by training who sees sharpening of tools as a means to an end and not as a religion. DMT bench stones are soooo cheap in the US (they cost as much as 3 times as much in ROW) that you should not waste (expensive) time with Chinese carborundum stones or EZ-Lap …err … junk.
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.
Improving an item with a Resin increases the effective item level by 3. For example, a white quality Oak Bow at level 16 will, once improved with Pitch, have an effective item level of 19. Improving it again with Turpen, will make the effective item level 22. You will notice in the Weapon and Armor tables that the Superior value at level 16 is the same as Normal at level 22. This is important to note, since several Crafted Sets have break points where their bonuses increase based upon "effective level".
While there are certainly tools beyond this list that would make certain tasks easier, I feel confident that you can build pretty much anything you could possible want using this beginner woodworking tool set. Everything on this list is also purposefully portable and does not take up much space at all. The goal here was to compile a list of the best beginner tools that would allow you to build almost anything, anywhere, and only take up a small cabinet in your house or garage.
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.
We us the ReStore also– What great finds–sometimes things we were even looking for–my other favorite place is the second hand stores–many times they have give away bends that I have reclaimed out of–and we have a neighborhood swap–my favorite of all is the FREE CYCLE– its is a community of people that just give things away– OH MY GOSH–when I need to get rid of things after a yard sale its the best– someone always comes and reclaims my curdside giveaways–I love–it stays out of the dump and someelse is using something they may need badly– I have found tons of great things,wood,tirers, paint–ect.
Many home improvement projects and custom woodworking pieces alike call for a painted finish. Depending on the application process, paint can create either a rustic or refined finish, and it looks great when both paint and stain (or oil) are combined together in a piece (we love the look of a painted table base with a stained or oil-rubbed table top. See our portfolio for some great examples of this style). Paints are great for both exterior and interior protection and are available in an almost infinite number of color tones. Finishes include flat, eggshell, semi-gloss, and high-gloss depending on the amount of sheen you desire.
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.
Whatever your dream for a rustic look, you are sure to find something in this collection that will help you along. Many of these projects are so easy to do and you can complete them in less than a day. Some make wonderful gifts as well so if you know someone else who just loves the country, rustic look, make them something to brighten their own décor. The projects use all sorts of materials, many of which are really inexpensive or even cheap in some cases.

Not many YouTube woodworking channels are run by guys who also happen to have PhD’s in medicinal chemistry, but this one is. Brian Grella’s channel offers a mix between more atmospheric videos that aren’t heavy on explanations (as the one shown above), and ones that are firmly in how-to territory, like this one for making a beautiful wooden bowl using nothing but a router and a drill press (no lathe required):
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