How about a hunk of butcher block counter top on a 4X4 (legs) base on locking wheels.  Round over the good side and it is a rolling kitchen stand - chopping block -  island.  Flip the top over, lock the wheels, and it's a bench.  There is a vise that is sold by Woodcraft that drops onto a mounted post in both vert and horiz positions that would be perfect for a small flip top bench.  The post would be mounted to the underside, unseen till the top was flipped and the vise dropped on.  It pivots but when the jaws are clamped it is tight.
In my shop I use a large number of Jorgenson F-clamps. I use many of the small clamps, the most useful being the 12" version. Large F-clamps are essential for cinching down parts on bending forms. I also like aluminum bar clamps because they are much lighter than steel clamps, and therefore less likely to damage a carcase should you bang into the wood dur­ing a glue-up.

Carl Jacobson has created over 350 videos to overwhelm you with project ideas, some of which you can complete in less than an hour. He takes you through the entire process from preparing the wood to the sanding and finishing of the project. Carl releases a new video every Friday with a follow-up video every Monday to answer questions based on the feedback he received over the weekend. 

For under $20 I am very impressed with the Bad Blade Carver by Kwik Tool.  Mounted in a 4.5″ grinder, it removes a ton of material quickly yet allows a fair amount of control.  The disk has only 6 teeth so the carver is mainly a solid disk with very few teeth to bite and create kick-back or dig-in. I found I had the best control when engaging the blade between 12 o’clock (top of the grinder) and 3 o’clock. When in that range it was not overly aggressive and left me in control.
One of the challenges we all face is how to move machines into a home without damaging the home, the machinery, or yourself. I actually had to bring things through the front door, and across hardwood floors, and turn 90° to descend the stairs into the shop. To protect the floors, I laid down sheets of 1/2" MDF that I could use later. On the wooden stairs, I used three strips of softwood strap­ping, held with wood screws to the stairs. I mounted a 2x4 baton to the wall studs at the top of the stairs, with a 5/16-inch eye-bolt through it.
This post speaks right to the heart of frugal woodworking. The woodworker addresses how to make a dye from tea and alcohol that is fast drying and will not raise the grain of your wood. Technically I guess it is both a stain and a dye since since the tannins in the tea will actually change the color of the wood, and the other colors in the tea act more like a stain. Either way it is a great idea.
The most commonly purchased claw hammer is the 20 oz. size. It’s heavy enough to easily drive nails but easily manipulated when pulling nails. While wooden handles are picturesque, they may not stand up to the strain if you have to pull a lot of nails. Hammers with a steel handle, or even fiberglass, will be stronger. However, these won’t absorb the vibrations from driving nails the way a hickory handle will. You’ll also need to make sure the fiberglass and metal handles have a rubberized grip for control and comfort. If you’re going to be driving a lot of nails, the wooden handled hammer will be better for reducing stress on your hand, and wrist, too.
To get the most out of your router, you are going to want a router table.  You may find yourself asking if you really need one - if you do, check this post out.​  It's one of those purchases that you won't truly understand how valuable it is until you have one.  Given the budget of $2,500, I'd suggest looking at the Bosch RA1171 ($150).  If you want to see our favorite tables along with write-ups, check them out here.
Woodworking is a fun hobby, but can be expensive as well. With all the power tools, hand tools, shop setups and, of course, the wood, many people are turned off to woodworking because of the impact on their wallets. That doesn’t have to be the case though. With a little pre-planning and inside knowledge, you can set up a basic wood shop and start making your own items without breaking the bank.
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.
Many home improvement projects and custom woodworking pieces alike call for a painted finish. Depending on the application process, paint can create either a rustic or refined finish, and it looks great when both paint and stain (or oil) are combined together in a piece (we love the look of a painted table base with a stained or oil-rubbed table top. See our portfolio for some great examples of this style). Paints are great for both exterior and interior protection and are available in an almost infinite number of color tones. Finishes include flat, eggshell, semi-gloss, and high-gloss depending on the amount of sheen you desire.
The thickness planer can joint a board's face. On this simple jig, the stock is supported by twin rows of wood screws driven into a platform and adjusted to meet the varying clearances on the underside of the board. The stock rides the sled cup side up. Slide the board slightly sideways to adjust the screws, then seat it firmly on the screw heads for planing.

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.
On the money issue one`thing I did is find something that is fairly easy to make and easy to sell. I made kaleidoscopes to begin with and still whip up a batch if I need to buy wood or a new tool. A neighbor WW makes wooden condiment holders for restaurants. A good friends son worked his way thru college by making a certain bearing that they needed on his tiny lathe. Spend a month or so on $$$ stuff before doing the better stuff.
Ash is a white to pale brown wood with a straight grain. It’s pretty easy to work with, is a fairly hard and dense wood, and takes to stain quite nicely. Ash has a medium to coarse texture similar to oak. The grain is almost always straight and regular, though sometimes moderately curly or figured boards can be found. Ash is becoming harder and harder to find, so it ranks as an increasingly expensive material to use.
Every woodworker needs a couple of levels. You probably won’t need one of the 6-foot levels used in construction, but 48” is a good length for many of the woodworking projects you’ll do. Usually, you’ll also need an 8” level too, usually known as a torpedo level. You’ll check the level and plum of your construction. Level means horizontal, and plumb is vertical.

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.
That's it. That's all you really need to begin woodworking. Over time you will add more tools to your collection, like chisels, drill bits, a sander and, more clamps; but for right now you should be able to get started on most beginner projects. Don't be afraid to look online for second- hand tools. Old drills and circular saws work well when given proper care. With some ingenuity you can figure out how to adapt most plans to the tools you have available. People have been making wooden items throughout human history, and they didn't need expensive planers, biscuit joiners or fancy jigs. Start learning the craft, see if you like it, and have fun. 

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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