Having very sharp tools is one of the most important aspects of proper traditional woodworking with hand tools. Many beginners think that they stink at woodworking, but usually they are just using dull (or improperly sharpened) hand tools. To start off with I recommend buying quality sharpening supplies for sharpening & honing your chisels, hand plane irons, and handsaws. And I’ll help you save money by avoiding systems that don’t work as well.
1: Table saw in place of a jointer. Any number of tips in previous issues address straightening edges of boards without a jointer. A jointer serves one purpose, but a tablesaw can serve many (just watch your local Craigslist for a decent one to come up.) The thickness planer is unavoidable, but until you can afford one, buy stock in the thickness you need.
I use chisels perhaps more than any other tool in my workshop, so it’s a good idea to not cheap out here. A high quality set of bevel edge bench chisels (new or vintage) will last you many years (likely  your entire life) and will be used on nearly every project. I’ve used some descent affordable plastic handle bench chisels, but highly prefer lighter wooden handle chisels with excellent steel.
Thank you for this post. I am about three years into wood working with handtools. I didn’t want to be a handtool collector. I wanted a good set of tools I could use. Since funds were tight and I wasn’t sure if I would keep doing this, I wanted to build my tools slowly. What you outlined is more or less what I ended up getting and it has indeed served me well. One can easily do a lot with all of these tools. At some point about two years into the hobby, I had a much better feel for what I wanted to make and what I may or may not need beyond this.

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1: Table saw in place of a jointer. Any number of tips in previous issues address straightening edges of boards without a jointer. A jointer serves one purpose, but a tablesaw can serve many (just watch your local Craigslist for a decent one to come up.) The thickness planer is unavoidable, but until you can afford one, buy stock in the thickness you need.
As someone who finds hand planing a challenge the minimalist approach seems like the best way to truly learn a tools quirks and develop the skill required. So the Veritas BU planes are going along with the Tormek required to sharpen those gargantuan irons and a diamond plate and oil stone are on the way to get my old Stanley no 5 humming. I never found a sharpening routine that didn’t look a ball ache to keep the BU planes working well and being a stick thin wimp the weight of the buggers for anything more than controlled smoothing shavings knackered me out.
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The very affordable coping saw (usually under $20) is regularly used for rough cutting shapes in the board, but especially for removing waste from dovetail joints (one of the most common wood joints). An affordable coping saw will work just fine, along with a pack of affordable replacement blades. Read my hand saw buying guide for more detail on brands & features to look for when purchasing a coping saw.
My Stanley 51/2 was in a bit of a state when I got it and refurbing it took a bit of time and cash. Now it works a treat and looks like new. I’m nearly through the bench build and have spend hours using it – it really is a workhorse piece of kit. I did some final cleaning up of some oak legs the other day and I can’t really see how a smaller plain would do a better job.
I’m not sold on the need for a power jointer for flattening a surface. That said, I do have a Shopsmith 4″ jointer.. It’s great for jointing edges, and perhaps flattening the occasional rails and stiles, but it of course is inadequate for surfacing wide boards. Would a six inch jointer be better…..not by much. So what do we do? Go to an eight inch, or better yet a ten inch jointer? Now we’re getting into really big, heavy, and electrically hungry machines that are not really suitable for the small shop that is likely to be in a small shed or garage. 
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