1. Power jointer and thickness planer. I have developed various means of straightening the edges of my stock with hand-held tools, but I don’t see a way to efficiently flatten the faces of rough or reclaimed lumber without a power jointer. It’s part of the first few steps for any furniture project, and I want to be able to move through this step quickly and into the more interesting work. The thickness planer is also a huge time-saver, compared to hand-held tools.
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.
Wooden mallets are mostly used for hitting your chisels when cutting joints (like dovetail joints or chopping mortises). You should never hit a chisel with a metal hammer. Build or buy a mallet that is made of fairly hard wood (e.g. maple, oak, beech wood, etc.), that will feel well balanced in your hand, and that gives you enough weight to chop with your chisels.