As an x aerospace machinist I have run manual lathes and mills and programmed and run CNC as well. IMO a manual lathe is far more versatile and useful than a CNC for the average DIY buff. A CaN C is basically a very accurate production machine but to spend time programming, setting up, proving out just for a couple or several pieces is not practical ( unless you have money and time to spare)
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.
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.
Low-tech tools are high on value A basic set of handplanes lets you true edges, flatten panels or wide boards, and achieve finish-ready surfaces. Start with a small cluster of handplanes—low-angle and standard block planes, a No. 4 or 4-1/2 bench plane, and a jointer plane. A set of inexpensive chisels is essential for chopping, paring, and trimming.
The most common type of cedar used today is the Western Red variety. Western Red Cedar, as its name implies, has a reddish color to it. This type of wood is relatively soft, has a straight grain, and has wonderful aromatics. Western Red cedar is mostly used for outdoor projects such as furniture, decks, signs and exterior siding because it is naturally resistant to moisture and water corrosion. Cedar also makes for a great closet or chest for storing clothes and other fabrics because of its resistance to moisture. Cedar is moderately priced and can be stained to a variety of tones.
While you have a decent starter shop, it's important to keep in mind the projects that your tools can handle.  You are going to want to focus on projects that don't require your stock to be ripped to a different dimensions than what you purchased it at.  You are currently only set up to do crosscuts with your miter saw.  So while you can turn an 8' 2x4 into two 4' 2x4s, your not going to be able to turn that same board into two 2x2s.    
About Youtuber My name is Andrei. I live in Russia and run my small business. Woodworking is my passion. I am the only woodworker in the shop. It is my full time job. I make only end grain cutting boards. I've been making end grain cutting boards for years. Sometimes I make end grain chessboards, end grain jewelry boxes, etc. Also I prepare woodworking plans.
For those who want to make money from their woodworking skills, David Piccuito's channel Make Something is a great place to start. He encourages woodworkers to use his designs for selling to clients as long as he gets credit for the design. Make Something has tutorials for making things at any skill level, from beginner to expert. It is filled with woodworking hacks on things like how to make curved inlays and how to drill really large holes—even those holes that are larger than your largest bit.

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.
My shop ended up being 23 x 19 feet, for a total of 437 square feet. I put my wood rack in the basement, but out­side the walled in shop area. To keep the dust in the shop, a three part strategy was employed. I have a dust collection system, an air filtration system and a shop vacuum for cleaning dust out of machinery. I put up new walls, installed new electrical service, lighting, and two access doors for ease of materials move­ment. The shop includes two windows so that I can enjoy natural light, and not feel like I am squirreled away in the basement.
I use a 9″ x 12″ Chinese grade B surface plate and wet the back of the carborundum “sandpaper” to hold it in place. Obviously not the “budget” version, but I have the surface plate for other purposes. At about $17 from ENCO it wasn’t very expensive. And it *really* is flat to better than 0.001″. So the thickness of the paper is the biggest error. I also have a good assortment of Arkansas and other types of stones, though none of the Japanese waterstones. I generally don’t use the surface plate unless the edge is really bad e.g. an abused tool picked up at a yard sale.

The router—The router is the master when it comes to flexibility. Its potential far exceeds trimming and decorative edge treatments. A router will cut mortises, rabbets, and dadoes, and adding a router table builds in even more versatility, including biscuit joinery and raised-panel doors. But where the router distinguishes itself from all other tools is in its ability to produce identical parts using a pattern.
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.
One of the best deals on portable power tools, including routers and sometimes planers, comes in the form of factory-reconditioned tools. These are primarily tools that have been repaired at the factory after failing quality inspections or being returned by customers. While they cannot be sold as new, they are identical to new tools in quality and appearance and usually feature the same warranty (be sure to check). Typical savings are anywhere from 15% to 30%, though you sometimes can find even bigger bargains. These tools can be found at Amazon.com and other online tool sellers. It is also possible to buy them through retail stores and, in some cases, directly from the manufacturer’s Web site.
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Available in both water-based and oil-based finished, polyurethane is one of the most common practices used in woodworking today. Polyurethane can be sprayed, brushed or rubbed onto the piece to obtain either a satin, semi-gloss or glossy finishes. Polyurethane is a very versatile finish that will last for many years and is easy to clean and maintain.
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.)

Let’s start with perhaps the most basic tool in every household – the claw hammer. The claw on one side of the head should be well counterbalanced by the finished head, which should be somewhat rounded. The other kind of head is the waffle-head. Most commonly used in construction, it leaves a distinctive waffle mark on the wood when you drive the nail. This, of course, is not the proper nail for woodworking.
The second big tool you need is a saw. There are many types of saws, and this can be the trickiest part of setting up a shop on a budget. As a beginner, you'll likely be using woodworking books, magazines and websites for instruction and inspiration. Unfortunately, most of these sources consider a table saw a beginner tool. For those of us on a budget, or with little space, a table saw may not be an option. They cost several hundred dollars to start, and take up several square feet of floor space. Instead, look for a good circular saw that allows you to adjust the depth and angle of cut. It's also nice to have a laser to help guide the cuts. You can get a decent circular saw for around $100.

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An assortment of chisels should be part of every workbench. Chisels are not just for wood carvers. Any woodworker will need chisels to clean out joints and saw cuts. Look for chisels made of high-alloy carbon steel or chromium-vanadium alloyed steel. Hardwood grips are best, especially if they have metal caps on them. This will keep the end of the handle from becoming malformed when you hammer on it.

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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. 

The best advise I can give you is to get and read the book "Hand Tool Essentials" by the staff of Popular Woodworking before buying any tools.  It is sort of an inexpensive crash course in hand tools.  Chris Schwarz's book "The Anachrist's Toolchest" is another good source of information on handtools that I found to be a fun read.  Use the internet to learn all you can about a tool before buying.  The tools you need are dictated by what you want to build.
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