​There are some diverging paths that you could take at this point: some may want to get a router with a router table for edge work and improved joinery capabilities, some may want to start looking at some of the interesting 3rd party jigs - two of my favorites are the DowelMax and the Kreg Pocket System, but my recommendation would be to equip yourself to buy cheap stock.
The fourth most important basic handheld power tool every beginner should buy is a random orbital sander. While palm sanders are less expensive and can use plain sandpaper (cut into one-fourth sections), the random orbital version uses hook-and-loop fastened sanding disks, and doesn't sand in patterns, using instead a random sanding motion. This will motion will serve to reduce the chance that any sanding marks may appear on the stock due to the sanding. Of course, be certain that your local woodworking supplier has sanding disks readily available in a number of grits to fit the model that you choose, as the key to proper sanding is to use progressively finer grits as you sand to reduce or remove any marks that are left behind from the previous sanding.
Even if you don’t live in a rustic log cabin, you can give your home a great cabin look by simply planking one or more walls. This is a relatively easy project that will add beauty and value to any home. Just choose the wall that you want to change, and add wooden planks which you can pick up at most home improvement stores for very little. Then stain if you want and you have a lovely cabin type wall
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!
Even if you don’t live in a rustic log cabin, you can give your home a great cabin look by simply planking one or more walls. This is a relatively easy project that will add beauty and value to any home. Just choose the wall that you want to change, and add wooden planks which you can pick up at most home improvement stores for very little. Then stain if you want and you have a lovely cabin type wall 

Thanks for the acknowledgement. My goal is for viewers like yourself to be able to focus 100% on the video’s content, woodworking. Most woodworking apprentices will ask the journeyman to show them how it is done. At the same time, many beginning woodworkers do not know what questions to ask. By showing you on the video, you are able to think for yourself and to also formulate important questions to ask. With that said, the more you watch each video, the more you will learn about woodworking skills and techniques. (some things in the videos are subtle that you may not pick up on the first viewing.)
With the right tools and materials, what you build is only limited by your imagination and creativity. So why not have a little fun with the kids and teach them something at the same time? Our woodworker tools and woodworking supplies will help you put together an easy birdhouse, squirrel feeder or butterfly house. The kids will love to use our paint samples to add their creative touch, and will enjoy displaying the finished product in the backyard.
Ok, the leap from $1,000 to $2,500 is a big one.  I certainly didn't make it at one time.  It took me years.  But I know folks that decided they wanted to get into woodworking and dropped at least $2,500 getting themselves outfitted.  When you do make the jump, the thought process becomes much less about making sure you can get the job done and becomes more about having quality tools to get the job done.
@jayemel: tempered glass works perfectly, as the (theoretical) fluctuations in flatness as a result of inner stress are several orders of magnitude smaller than the significant variations of thickness of your sandpaper. Unless you want to reflect the light of distant galaxies off the bevel of your chisel and measure their red-shift, you will be fine (and safer) to use tempered glass.
As a gardener/homesteader, and setting aside basic firewood tools (chain and bow saws, hatchet, axe, maul, sledgehammer and wedges), the most important woodworking tool I possess is the drawknife. This enables one to quickly and efficiently peel bark off of saplings and poles (which alone increases their durability outdoors, and is essential to prepare them for other uses), and is also good for rough shaping work....more accurate than a hatchet, and quicker than a chisel in many cases. I probably use my drawknife about as often as any of the basic carpenter's tools like a crosscut saw or an electric drill.
Once you have the four aforementioned handheld power tools in your arsenal and you've had time to get comfortable with using them, its time to make your first (and likely most important) major tool purchase. The table saw is the heart and soul of every woodworking shop, the centerpiece around which all of the other tools are used and organized, so you'll want to buy the best table saw that your budget can comfortably afford. Take the time to learn which features you really want and the table saw that best fits your budget and your needs. This article will show you the most common features, and how to determine what features you need and how to know if those features are really well built, or simply added on to the saw because they are selling features.
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