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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.
Let's talk about a few strategies for building out your shop below retail price.  There are the obvious ones like yard sales, craigslist, estate sales, and thrift stores, however, these can be hit or miss.  First of all, not everyone lives in an area where these avenues exist.  Second, when your brand new to woodworking, it can be hard to evaluate a tool that your buying second hand.  Because of this, I'm not going to focus on these channels in this post, but I will say, if your willing to do some hunting for second hand tools, you can easily save 50% to 75% on some perfectly fine equipment.
These basics are going to set you back about $180, leaving you with $320 left to work with.  We are going to be leaving behind two hand powered tools from the $250 shop and upgrading to powered alternatives.  This should lead to more consistent results, more enjoyable builds, and increased efficiency.  These are all goods things that only the biggest fans of The Woodwright's Shop would argue with.
About Youtuber Here you will find everything from money saving tips, woodworking projects, jigs and completely wild contraptions. I have been building and designing since I was old enough to swing a hammer. With a mind for out of the box thinking and an unusual mix of artfull design and engineering interest, you never know whats going to happen next.
Man, do I ever know about the "pre-buyers remorse"! My fiancé is a self proclaimed "cheapskate"(her language is a bit more coarse), but when it comes to my shop, she's all for me spending. I always end up being the one to pump the brakes, as I have a history of being TERRIBLE with money(@ 21, I was making close to 6 figures with no post-secondary education, and at 31, I still have less than $5,000 in the bank), while she pushes me to get "whatever I need". Of course, we all know that the line between want and need is pretty blurry. I agree with some of the other posts; I keep all of my expenses logged, and try to churn out money-makers to chip away at the red, always hoping to reach the black. So far, I'm still seeing red, but as my shop continues to flesh-out and my skill set grows, profit begins to sound more and more feasible all the time. Of course, I'm not really trying to make money. I just want to buy bigger and better equipment and supplies!
You’ll need a long screwdriver with a square blade that is very heavy duty. This gives you a lot of torque. You’ll also need a small and medium slot screwdriver. For working on cabinets or tight places in woodworking, you’ll need a screwdriver with a thin shank so that you can reach screws that are inside of deep holes. This is accomplished with a cabinet screwdriver. Get a couple of medium Phillips head screwdrivers, and a stubby one too, for those tight places. You may also want a ratcheting screwdriver.
While some people consider the circular saw to be more of a carpentry tool than a fine woodworking tool, but some would disagree. There may be no more versatile basic handheld power tool than a circular saw. When used with a clamp-on straight-edge, the circular saw can be just about as accurate as a table saw and handle quite a few of the tasks that one would attempt with a table saw, particularly cutting sheet goods such as plywood or medium-density fiberboard. When woodworking on a budget, a quality circular saw should be the first handheld power tool purchased, as it is the one that will likely be the most useful as you get started.

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.
The next important hand tool for the woodworker is an accurate tape measure. Get a retractable one that is at least 25 feet long. Any longer than that, and you start having problems getting it to roll back up. Since measurements on large scale projects can be very susceptible to even the most minute measurement variations, you’ll want to make sure the “hook” or tab at the end of the is firmly attached, with no give. When they get loose, you’ll have as much as 1/8” variation in your measurements. This can add up to some severe accuracy problems in the long run.
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