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.
However, instead of sharing a remodel update this week I thought I would do something a little different. This little voice in my head (sometimes called my husband) has been nagging me to add videos to my blog. I did a couple 1 minute hands-only videos a few months back, but I have been seriously afraid to get in front of the camera. The nagging voice finally won out and I bit the bullet and got in front of the camera for you today! I decided to do a video for today’s post instead of just writing out a boring list. And while editing the video I came to the realization that I am very expressive when I talk. Wow! I use my whole face when I talk. I guess that’s what people meant when they said I am dramatic. Oh well, this is me so I hope you enjoy today’s video about how to build a woodshop on a budget.
If you choose paint for your finish, you won't want to waste your money on woods known for their color and beauty when stained, so avoid richly-colored species such as oak, maple, walnut or mahogany. For painted projects, poplar is a very good choice because it is relatively stable and takes paint quite well (not to mention that it doesn't look all that good stained).
The most common type of cedar used today is the Western Red variety. Western Red Cedar, as its name implies, has a reddish color to it. This type of wood is relatively soft, has a straight grain, and has wonderful aromatics. Western Red cedar is mostly used for outdoor projects such as furniture, decks, signs and exterior siding because it is naturally resistant to moisture and water corrosion. Cedar also makes for a great closet or chest for storing clothes and other fabrics because of its resistance to moisture. Cedar is moderately priced and can be stained to a variety of tones.
Most chisels are beveled on the 2 sides and on the cutting edge, but specialty chisels may only be beveled at the cutting edge. This bevel will be at 20 to 25 degrees down the length of the blade on one side, and flat on the backside. The blade will be between 4” and 7” long. Make sure you get chisels with a grip that fits your hand. If the grip is too small, you won’t be able to hold the chisel steady as you work. Be sure to use a mallet or wood hammer when you work, so that you don’t destroy the head on your chisel. Keep track of the edge caps, keep them sharp, and oil the metal now and then after you’ve used them, and they should be good for years. If you don’t have the edge caps, get a roll to keep them in. This will prevent them from bouncing around in your tool box drawers and getting damaged.
Raw material is a concept. A concept that we describe as any material that has yet to find its final home. It is a material that is en route to becoming something interesting, creative and more permanent in the world. If it has yet to be worked and transformed to create a unique piece of woodworking or artisan craftsmanship, then it is still raw to us.

The solution to potentially wedged boards on a jointer is to add a planer to the mix.  A planer has a flat surface with a cutting edge that is exactly 180 degrees to the surface.  This allows you to position the jointed edge flat on the planers surface and make a cut to the opposite side of the board that is perfectly square.  As an added bonus, the planer allows you incredible control over the thickness of the boards you're planing.  ​
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.
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.
While you have a decent starter shop, it's important to keep in mind the projects that your tools can handle.  You are going to want to focus on projects that don't require your stock to be ripped to a different dimensions than what you purchased it at.  You are currently only set up to do crosscuts with your miter saw.  So while you can turn an 8' 2x4 into two 4' 2x4s, your not going to be able to turn that same board into two 2x2s.    
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