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.

About Youtuber Steve Johnson is a full time life-long hobbyist woodworker committed to helping new and experienced woodworkers achieve the "shop of their dreams" - even if (especially if?) they don't have a dream budget to work withHis videos can be seen at "DownToEarthWoodworks" on YouTube and his articles appear monthly in Highland Woodworking's on line newsletter "Wood News Online.".
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.
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.
After you have chosen the perfect table saw for your wood shop, the next major purchase one should consider would be a compound miter saw. While not as expensive as a quality table saw, a compound miter saw is invaluable for cutting compound angles (beveled, mitered and combination cuts) on the ends of a piece of stock. Once you develop your ability to make precise cuts with a compound miter saw, you'll find that your circular saw spends a little more time in the drawer than it used to.
We’ve already done rope, and now we’re on to another rustic material we love: wood! It’s as basic of a material as clay and is constantly reinvented by DIYers, crafters, artists, hackers, and carpenters. To get inspired to create our own batch of cool wooden objects, we turned to our favorite fellow makers to see what projects they’ve come up with. Scroll down for our top DIY wood project picks.
I set an initial budget of $10,000 to build the shop – everything from studs and drywall to hand tools and machinery. The final number was over by $1,000, but I’m still very happy with the result. The shop is now my haven, with a good sound sys­tem and good lighting. Every time I go back into the shop, it is exactly the way I left it, because it is my shop!
Check with Habitat for Humanity.  If they have a store you may find several good items such as a bench, bandsaw or etc.  When I retired and moved I donated  a complete shop full of woodworking power tools and hand tools to Habitat.  They sold them, I deducted them from my income tax.  Unfortunately I could not retire my desire to woodwork and at age 78 I built a shop and use only hand tools and a bandsaw.  Good exercise pushing  a LN #7.   Build yourself a solid bench with some southern pine with a moxon vise that can be built by hand.  Get some holddowns!
Since I long ago lost the woodcarving tools I used to own as a youth, I figured I would focus on something larger. With my current ideas of doing a commercial greenhouse venture, I have considered making my first project one of a pergola for training plants up as a living shade-tent area. I have also considered trying to do an earth-sheltered greenhouse assuming I can figure out a loophole in city ordinances and/or coax the officials to sign off on it. I would love to do some hand-carved bowls and eventually make my own workbench and maybe even craft other things like a shaving horse. A foot-powered lathe is another one that I still find fascinating from the Foxfire books.
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.
Steely blue walls and a few intricately placed wood slices will give your bathroom a great rustic look. You will need several wood slices to go all the way around the room and then just place them in geometric patterns or however you want. Thin wood slices will affix to the walls easily with wallpaper glue or you can use a hot glue gun if you prefer.
This style of saw will provide more power than a contractor-type saw and have the high-quality rip fence you need to do good work. However, because they are favored by professionals and serious amateurs, cabinet saws are harder to find on the used market. Scour the classifieds and online sales (be sure to check industrial auction sites as well), and do some networking. Check the bulletin board at your hardwood supplier and ask the proprietors if they know of anyone selling a saw. Also call local cabinet shops. They sometimes have a surplus tool sitting idle that they’d be willing to sell. Take your time in this step. A careful investment will pay dividends in the long run, but a well-intentioned compromise can cause long-term frustration.
*any* glass made by the float glass process will have the same level of flatness (>95% of today’s colorless glass). However, thicker is better and I would see 5mm as the absolute minimum. When glass slabs get bigger/heavier their shards pose a real risk in case they crack. Therefore, 5 or 8mm tempered glass is what you should be looking for. If you can’t find tempered glass, cover the back with UV-stabilized (all weather) tape: this will hold the shards together and you don’t get any exposed edges.
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.
All in all, for whatever reason it is that you enjoy woodworking, then you always need to follow that passion.  There is always going to be obstacles to overcome, whether that be not enough money to buy your tools, or space to put those tools, or time to enjoy woodworking.  That is something that every person has to overcome.  Everybody has there own unique obstacles.
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Non-Standard Miter Slots - This one is a downer.  One of the primary advantages of having a table saw is access to jigs that expand the saws functionality.  This is a major issue if you plan on buying after market jigs.  Given that we are limiting the cost of this buildout to $500, I am guessing that after market jigs are probably low on the priority list.  Your going to want jigs once you start researching what they enable you to do, my advice is to build your own - there are plenty of plans online.  

A layout square, or combination square, comes in 6” and 12” sizes. Most woodworkers use the 6” model, simply because it’s easiest to carry around. Also, most of the stock you’ll use will be no bigger than 6” wide, so 12” is overkill. The layout square is a triangle that you can use to mark square cuts on stock. Once you measure the length of the cut, you line up the layout square with the edge of the board. The short side will give you a straight, square cut across the end grain. You can also measure off angles with the layout square. This helps when you’re trying to measure for a bevel on a table saw, or marking a cut for a miter saw. You can even use your layout square to determine an existing angle. Just be sure to buy one made of metal. The plastic ones are not only fragile, but they also can warp, making them pretty useless.
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