An old piece of wood and a few hooks will help you to create a beautiful hanger for your favorite coffee cups. Just add the hangers, stain the wood and then hang it on the wall. This is a project that takes little time and will cost very little if you already have the wood on hand. You just have to purchase the hangers which are relatively inexpensive.
I place the band saw first in my order of purchases, because I consider it the heart of the shop. Band saws are very safe tools for ripping, re-sawing, cutting curves and more because all of the force is downward, virtually eliminating any chance of unexpected kickbacks. I wanted a saw that had a strong back, dynamically balanced cast iron wheels for smooth operation and flywheel effect, 12" depth of cut, good dust extraction design, a large table and a solid fence. After shopping around, I settled on the General International Model 90-170 14" saw. It is very smooth, comes with an Excalibur fence, and it is light enough (133kg) to move into your basement without crushing someone.
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.
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.
Arbortech Turbo Plane – The turbo plane is more than 7 times the cost of the Bad Blade Carver, however The turbo plane is kind of a more refined animal.  It probably isn’t fair to compare the two. The Turbo Plane leaves a better finish and can be used in a different way,  but for bulk removal and heavy shaping, I think the Bad Blade Carver wins. If you want the scalloped and smooth surface, then the Turbo Plane wins.
As far as advice goes, I'm like a lot of the other folks on this thread; make a shop budget that fits into your existing budget and stick to it. Whenever you can foresee a larger expense, skrimp and save, cut costs in other areas of non-essential spending, and accept that sometimes, you NEED to go outside of your budget. In my experience, if it means enough to you, you can make it work. Good luck!
That just reminded me of a FWW piece many years ago that had me rolling on the floor.  Craftsman had built a large piece being delivered to an apartment on the top floor.  Couldn't get it on the elevator so they got controll of the elevator and ran the top of it to be even with the floor, loaded the piece on the top of the car and rode with it inside the shaft while balancing it and keeping it from hitting the shaft walls.  At some point in the trip up they lost control of the elevator and it started making trips up and down to other floors.  I'll see if I can find it.
I got tired of skimping on things and ending up with results I wasn't happy with. Lesser quality woods, cheaper hardware, tools that were frustrating to work with - this was my reality for too many years. And my skills really didn't improve in those years as they should have. I think part of the reason was because I often walked away for months or even years because I hated the results I was seeing.
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.
Some might expect to see a cordless drill on this list, but when we're talking about basic power woodworking tools, a corded drill is more versatile and powerful. Sure, the cordless is, well, cordless, which makes it more portable, but corded drills are less expensive and can do more than a cordless drill. There are some options to consider when choosing a corded power drill, such as whether you want a 3/8-inch or 1/2-inch chuck, keyed or keyless chuck, straight drill or hammer drill, and so on. Learn all about these options (along with some suggestions on what to look for when shopping) in this article on corded power drills.
I wouldn’t give up on Craigslist or garage sales.. For around $1K or less, you can pretty easily find the four big ticket items (TS, BS, Jointer and Planer) and have the extra $2K to spend on accessories, material, DC, other goodies, etc. The key is patience and persistence, and if applied correctly, you can have a fantastic setup for very little compared to purchasing new. If you are setting up a business, you don’t usually have the time to scour for good deals, but for a personal shop, there is no pressing need other than that itch to get something done.
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