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.
Birch comes in two varieties: yellow and white. Yellow birch is a pale yellow-to-white wood with reddish-brown heartwood, whereas white birch has a whiter color that resembles maple. Birch is readily available and less expensive than many other hardwoods. Birch is stable and easy to work with. However, it’s hard to stain because it can get blotchy, so it is generally preferred to paint Birch.
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.