router bit

[domeier]

I bought a router and table today to cut the dado and rabbet on my bed wood. I want to keep this cheap, so I'm thinking I'll buy just (1) 1/4" straight router bit, use that for the 1/4" dado and multiple pass it for the 1/2" rabbet... and then I read that router bits cut slightly larger than their size?

Any of you master craftsmen types, please feel free to school me before I start in a-cuttin'. I've never used a router before. What bit(s) would you use to do this?