First, let's dump that hand powered saw/miter box.  It gets the job done, but it takes forever.  We're still on a lean budget, but shelling out ~$110 for a 10 inch electric miter saw makes a lot of sense.  This won't be your forever saw, but it should do fine for most projects.  It can handle up to a 4x6 stock which will cover 99% of what a beginning wood worker will throw at it.   

I know I’ve been a little MIA but we’ve had a big project in the backyard, an overwhelming workload (which we planned on being MUCH less), and then decided to hire out for some help to haul away a huge amount of dirt.  Unfortunately, that ended up with the guy we hired stealing from us…..uggggh.  When will we ever learn to not be so trusting?!  Steve and I both have a problem with that……but when did being “too trusting” become such an extreme character flaw?!!  Sad.  Anyway, the whole situation is under investigation and there are some definite twists to the story that the crime-show-watcher in me would love to share with any other crime-show-watching enthusiasts out there. ;) Hopefully soon.
While there are certainly tools beyond this list that would make certain tasks easier, I feel confident that you can build pretty much anything you could possible want using this beginner woodworking tool set. Everything on this list is also purposefully portable and does not take up much space at all. The goal here was to compile a list of the best beginner tools that would allow you to build almost anything, anywhere, and only take up a small cabinet in your house or garage. 

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.

Only comment would be to start with manual machines -once you have them mastered, then worry about CNC. I'm only 71 at this point, but I still have a lot of things left to master! Try to find even a HF mini-lathe and mill used, and get started. The sooner you start, the sooner you become experienced, Just a warning though - machining is just as addictive as wood working.
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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.
One of the most heavily used tools in your shop will be your table saw.  It is absolutely essential for ripping stock to size, working with composite material (like plywood and MDF), and venturing into the world of wood working jigs.  Budget is a limiting factor in a $500 build, but at $150 it is hard to pass up adding this Craftsman saw to your shop - even with limited funds.  

When I was just getting started with woodworking, I didn’t know anything about saws. The standard push saw was the only hand saw that I had any experience with. So naturally this was the type of saw I bought. It works fine for making cross cuts, and can even be used to rip, if you don’t have a table saw or circular saw. However, I quickly realized that I needed something for more precision cuts.
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