Drills, driving bits and drill bits are probably the most frequently used tools by homeowners and DIYers. Take a few minutes to learn the different types and what you really need.
Auger-style bits are for this purpose as well, and are most often used by plumbers and electricians to create holes for wiring and plumbing-in wall studs. Any sort of renovation where you're taking down drywall and working on wiring or plumbing is a good reason to pick up a selection of these bits.
Forstner bits can serve a couple of purposes: creating really smooth through holes and creating a stopped hole with a flat bottom. If you want to add a dowel handle to a spindle, then a Forstner bit is ideal because it creates smooth and flat-bottom holes that will allow the dowel to sit properly. These are used a lot in woodworking rather than general carpentry. A good set would include several bits ranging in size from 1/4 inch to 1 inch, in 1/8-inch increments.
Really big holes require a hole-saw bit. You can buy sets which allow you to drill multiple sizes (up to a couple of inches), or you can buy individual hole-saw bits up to 4 inches or more in diameter. These bits combine a typical drill bit in the center, with a rim containing teeth like a saw blade. These bits are also made for metal and other materials. A small set is good to have in your toolbox, but it’s probably good to hold off on buying the largest bits until you actually need them.