If you have wood pallets just lying around the yard, put them to use by turning them into a great mud room bench. This bench would look fabulous on the deck or just inside the door, wherever you want to put it. When you finish putting it all together, just sand and stain it whatever color you want and you have a beautiful bench that cost you very little to create.
​There are some diverging paths that you could take at this point: some may want to get a router with a router table for edge work and improved joinery capabilities, some may want to start looking at some of the interesting 3rd party jigs - two of my favorites are the DowelMax and the Kreg Pocket System, but my recommendation would be to equip yourself to buy cheap stock.
Danish Oil is an oil-based finish that soaks deep into wood pores to provide protection from the inside out. Generally made from a unique blend of penetrating oil and varnish that stains, seals and protects all at the same time, it enhances the natural look and feel of the wood, and creates the rich, warm glow. This finish is ideal for furniture, trim, molding or any other bare wood interior surface that calls for an accentuated look.
Those two tools comprise the most basic power tools you need to start woodworking. In addition, you'll need some hand tools. A hammer is an obvious necessity, and can be bought cheaply. A tape measure is a must- have for marking out lengths. A ruler or straight edge is needed to turn your measurements into straight lines for cutting, and can be clamped to a work piece to use as a saw guide. Speaking of clamps, they are important for joining pieces together for gluing, screwing or nailing. Most woodworkers have a lot of them, and you'll never have as many as you need. For now, just buy a few 6-inch and 12-inch clamps and add more as you need them.
One subject that a woodworker must always consider when building a project is how seasonal moisture and temperature fluctuations will cause expansion and contraction of the wood stock in the assembled project. For instance, if you've ever experienced a drawer that sticks only in the winter time, you've experienced seasonal movement of wood. Since each wood species is affected by these temperature and moisture fluctuations, you'll need to know a bit about the climate where the project will be used, and how your chosen wood stock is affected by the climate changes. Again, your local woodworking supplier can be a great resource for answering these types of questions in your area.

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.
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.
Now, I’m not crazy rich or anything. I know that’s still a lot of money, but you will be able to make SO many things with just these five tools you seriously won’t believe it.  And if you are just starting out, just buy one tool and try it out. You’ll be surprised how much you can make with just a jigsaw,  hammer, nails and a screwdriver.  I made tons of stuff!  All you have to do is get started…where there is a will there is a way. 🙂
My first projects were making things from pallet boards. I cut the boards to size using my jig saw.  It’s not quite as good as using a miter saw, but it got me by for a while with sufficient results.  Even now that I have a miter saw, I still use my jig saw A LOT to make notches (like for my outdoor table), or fun designs (like these deer heads last Christmas).
Matthias Wandel comes out with some amazing modifications for tools and techniques. This one however is incredibly simple and only requires a few scraps of wood and a pair of clamps to turn a simple circular saw into a custom width dado maker. You can spend a lot on special dado blades for table saws or router with a straight bit and some guides, but this method is simpler and the results are very close to the same. Very little is sacrificed by using this frugal dado making method. 

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One subject that a woodworker must always consider when building a project is how seasonal moisture and temperature fluctuations will cause expansion and contraction of the wood stock in the assembled project. For instance, if you've ever experienced a drawer that sticks only in the winter time, you've experienced seasonal movement of wood. Since each wood species is affected by these temperature and moisture fluctuations, you'll need to know a bit about the climate where the project will be used, and how your chosen wood stock is affected by the climate changes. Again, your local woodworking supplier can be a great resource for answering these types of questions in your area.
Flea markets and swap meets are great sources of old tools, but unless you are able to rehab and sharpen them, they aren't going to do you much good. You can always find lots of chisels and planes at these places, and they can be brought back to life. I wouldn't waste my time on any saws though, unless they are relatively rust-free. If a saw is rusty, you will have to re-file and re-set the teeth, which requires a good deal of expertise and some specialized tools.
A long-established channel with Italian-American woodworking geek Marc Spagnoli and his sidekick Nicole.   It's filled with great tutorials, guides, reviews and generally high quality content.  I'd described as aimed at an improving, and committed, woodworker - he uses fairly lots of clamps and glue, and shows in professional how to build quality pieces, generally of furniture.  I learned a huge amount from here, and it's easy bedtime viewing.  

This is sequential to step one, but with a little difference. You choose simple and easy woodcrafts to make.  Ones that do not require investment in expensive tools. Nor do they require a lot of wood and raw materials. There are plenty of examples of such projects to be found. We have written about a few of them here. Small and popular wood projects can be made in large numbers and sold with ease, for a high profit. 
A long-established channel with Italian-American woodworking geek Marc Spagnoli and his sidekick Nicole.   It's filled with great tutorials, guides, reviews and generally high quality content.  I'd described as aimed at an improving, and committed, woodworker - he uses fairly lots of clamps and glue, and shows in professional how to build quality pieces, generally of furniture.  I learned a huge amount from here, and it's easy bedtime viewing.  

Man, do I ever know about the "pre-buyers remorse"! My fiancé is a self proclaimed "cheapskate"(her language is a bit more coarse), but when it comes to my shop, she's all for me spending. I always end up being the one to pump the brakes, as I have a history of being TERRIBLE with money(@ 21, I was making close to 6 figures with no post-secondary education, and at 31, I still have less than $5,000 in the bank), while she pushes me to get "whatever I need". Of course, we all know that the line between want and need is pretty blurry. I agree with some of the other posts; I keep all of my expenses logged, and try to churn out money-makers to chip away at the red, always hoping to reach the black. So far, I'm still seeing red, but as my shop continues to flesh-out and my skill set grows, profit begins to sound more and more feasible all the time. Of course, I'm not really trying to make money. I just want to buy bigger and better equipment and supplies!
My shop ended up being 23 x 19 feet, for a total of 437 square feet. I put my wood rack in the basement, but out­side the walled in shop area. To keep the dust in the shop, a three part strategy was employed. I have a dust collection system, an air filtration system and a shop vacuum for cleaning dust out of machinery. I put up new walls, installed new electrical service, lighting, and two access doors for ease of materials move­ment. The shop includes two windows so that I can enjoy natural light, and not feel like I am squirreled away in the basement.
Ok, the leap from $1,000 to $2,500 is a big one.  I certainly didn't make it at one time.  It took me years.  But I know folks that decided they wanted to get into woodworking and dropped at least $2,500 getting themselves outfitted.  When you do make the jump, the thought process becomes much less about making sure you can get the job done and becomes more about having quality tools to get the job done.
About Youtuber Here you will find a wide range of woodworking and do-it-yourself topics, including: wood gear mechanisms, wood gear clocks, cyclone separators, dust collectors, modification of tools for dust collection, tips & tricks, home building and repair, electrical & electronic, building the John Smith Senior 20 Organ, antique vehicles and more.
Wow that’s a lot of assuming and supposing :) no shop right? no tools right? a place to work and tools for under 3K right? . This ones easy buy a pocket knife, set in your living room and whittle . So far you have $20 spent for a pocket knife. You might need another $200 for a decent vacuum to clean up all the shavings you made in your living room.
These YouTube videos provide great woodworking information that contains both traditional and modern methods. Each instructional video contains woodworking how to techniques to improve a woodworkers’ skills and also methods for how to work safe in the shop. If you want entertainment, then watch the video once. If you want learn, watch the again. If you want to master techniques and improve your woodworking skills, watch and study the videos repeatedly.
These how to videos and articles of information are dedicated to my woodworking instructor who trained me during my apprenticeship. This body of work is also in honor of the journeyman who were generous in sharing their woodworking knowledge and skills with me throughout my long career. All of you have helped me to make a wonderful living  in a great craft. My hat is off to all of you.
Thanks for the feedback. We’re glad you found the list helpful. Please note that this page contains only 10 of the 40 top tools for woodworking, displaying only hand tools. You can find the next 10 here: https://www.wagnermeters.com/top-40-woodworking-tools-2/. There are links at the bottom of each article to the next group of tools so you can view the entire list. Hope this helps.
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.". 

Finally, at the beginning you'll do just fine with a basic set of router bits that run ~$40.  A starter set will typically include straight bits for edge matching material, a selection of edge finishing bits, and some joinery bits.  As you work on a few projects you may find that more specialized bits are needed.   But specialized bits are expensive - so purchasing them as you have a specific need makes more sense than buying in anticipation of a need.

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.
If you'd like to learn more about the differences between hardwood species, I can think of no better resource than R. Bruce Hoadley's 1980 masterpiece, Understanding Wood: A Craftsman's Guide to Wood Technology. Not only does Hoadley detail nearly every species used for woodworking, he does an exceptional job at describing how to prepare, work with and finish these hardwoods. This is an industry-standard resource, one that I'd highly recommend to every woodworker.
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