Matthias Wandel comes out with some amazing modifications for tools and techniques. This one however is incredibly simple and only requires a few scraps of wood and a pair of clamps to turn a simple circular saw into a custom width dado maker. You can spend a lot on special dado blades for table saws or router with a straight bit and some guides, but this method is simpler and the results are very close to the same. Very little is sacrificed by using this frugal dado making method. 

Other important power tools—A good jigsaw will help get you through many tasks, particularly cutting curves, that would otherwise require a bandsaw. Look for one with blade guides that keep blade deflection to a minimum. A handheld drill is also essential. A quality corded drill is much less expensive than a cordless one, and will never leave you without a charge. Also look for a quality random-orbit sander with a provision for dust collection.
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.
I can't really give a great answer to your question - I'm still learning how to deal with woodworking on a limited budget myself, but I'm getting there. It's not always easy, but when I want something I can't afford, I am starting to remind myself more and more that someday my day will come when hopefully there will be more room in the budget for my woodworking hobby. I'm also hoping to start selling the occasional item within the next year to help bring in some extra money for woodworking related expenses.
This is sequential to step one, but with a little difference. You choose simple and easy woodcrafts to make.  Ones that do not require investment in expensive tools. Nor do they require a lot of wood and raw materials. There are plenty of examples of such projects to be found. We have written about a few of them here. Small and popular wood projects can be made in large numbers and sold with ease, for a high profit. 
My name is Marc Spagnuolo and welcome to my channel. I am a podcaster, video producer, author, and woodworking enthusiast. I have contributed articles and video content to FineWoodworking.com, Popular Woodworking Magazine and WOOD Magazine. Producing the Wood Whisperer is a great way for me to combine four of my passions: woodworking, technology, education, and humor. I believe that even the most complicated woodworking project is just a series of steps. My goal with this channel is to show you the tools and techniques you need to perform those steps.
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