As far as advice goes, I'm like a lot of the other folks on this thread; make a shop budget that fits into your existing budget and stick to it. Whenever you can foresee a larger expense, skrimp and save, cut costs in other areas of non-essential spending, and accept that sometimes, you NEED to go outside of your budget. In my experience, if it means enough to you, you can make it work. Good luck!
I find, as others have noted, that braces are pretty easy to find, and bits for them in decent condition harder. I too tend to buy them whenever I see them. There are a number of varieties of brace, and some meaningful differences in them. Pay attention to the design of the chuck, and to whether the brace is ratcheting, or not. They're all good, but some differences in best application. 

Just how small?  Will you have an extra bedroom for your shop or will you be doing woodworking in your living room?  Do you have to put the projects and tools away every time you want to entertain or will you leave everything set up all the time?  A while back FWW had a video tour of a shop in Japan that was smaller than small.  I'll try to find it and get back.  Found it...  shows what can be done in a small space but this shop was not on a small budget so no help there.
One tool that I’ve used over and over when my clamps were too small,  is ratchet straps. They come in handy when trying to glue several pieces together, like when making a table top out of 4 x 4’s. One problem though, is that when using ratchet straps on smaller pieces of wood, or longer boards, it’s possible to warp the piece you’re trying to make. However, if you’re careful, a ratchet strap can stand in for a clamp or two.
Steve Ramsey.  He's an energetic, fast-talking eccentric whose built his channel based on projects that can be done without investing in fancy tools.  He trudges out a banged-up table saw from his garage, chops stuff up on the bed of his truck, and generally produces well-structured projects - even if I can't agree with his design aesthetic and color choices.  Lots of good stuff to learn and a great channel for someone starting out.  
This is the one tool in the shop that provides the greatest opportunity to save money, if you are willing to purchase a well made, light duty machine, and take lighter cuts. In the past I have used General 14" planers that can hog off seri­ous cuts all day long. The problem is that these professional units cost over $5000, and they would crush my buddy as we haul them down the stairs (note: don’t be the guy on the bot­tom). After doing a fair amount of research, I purchased the Dewalt DW735 13" thick­ness planer. The unit came with a good manual, and was in a good state of tune. It is light enough for me to carry around the shop with­out excessive grunting, so that made it very simple to install. The planer has a sig­nificant internal fan-assisted chip ejection system. The chips are catapulted out of this planer, so have your dust collector running before you run stock through it. I now have to make more cuts at a lighter cut depth, but I saved about $4500, which makes my budget happy. The planer makes clean cuts, and has two speeds. I don’t see a reason for the two speeds for my type of work, but there is a faster feed rate should you choose to use it. Knife changing is simple and quick.

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I’m going to find a different piece of metal, and I’ll post a video of the working track when it’s done. I bet some of you are coming to expect failure from this blog. I warned you in the beginning that I’m new to this. I’m trying to share my experience from both my successes and my failures. It just so happens that I have a lot more failures so far.
However, instead of sharing a remodel update this week I thought I would do something a little different. This little voice in my head (sometimes called my husband) has been nagging me to add videos to my blog. I did a couple 1 minute hands-only videos a few months back, but I have been seriously afraid to get in front of the camera. The nagging voice finally won out and I bit the bullet and got in front of the camera for you today! I decided to do a video for today’s post instead of just writing out a boring list. And while editing the video I came to the realization that I am very expressive when I talk. Wow! I use my whole face when I talk. I guess that’s what people meant when they said I am dramatic. Oh well, this is me so I hope you enjoy today’s video about how to build a woodshop on a budget.
Softwoods are often softer and more delicate woods in general, as the name would suggest, but aren’t necessarily always weaker than hardwoods. Although, they are generally less dense and not as durable as Hardwoods, which grow at a much slower rate than softwoods creating a denser and stronger grain in the wood. Softwoods come from coniferous (or gymnosperm) trees such as Cedar, Hemlock and Pine and lean towards a yellow to reddish tone by nature. Hardwoods come from angiosperm (seed producing) trees such as Oak, Cherry, Maple and Walnut and are generally darker toned woods. Softwoods tend to be less expensive than hardwoods, as they grow much more quickly and can be milled at a faster rate. While hardwoods are generally more expensive, the durability, strength and overall look is often worth the additional cost depending on your project needs.
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Just how small?  Will you have an extra bedroom for your shop or will you be doing woodworking in your living room?  Do you have to put the projects and tools away every time you want to entertain or will you leave everything set up all the time?  A while back FWW had a video tour of a shop in Japan that was smaller than small.  I'll try to find it and get back.  Found it...  shows what can be done in a small space but this shop was not on a small budget so no help there.
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