Also, select light wood weight for your hiking stick project because each thing you add to you hiking stick making project make the stick less usable on long hikes due to excessive weight. the preferred wood I use for these type of hiking stick making projects are aspen, fir or pine (in the order presented). Yes you can use hard woods however due to their weight you may want to make a smaller compartment and switch to one that is 1.5" thick (3/4" compartment).
When you make your hiking stick compartment make sure you leave 1/4" around the edges. If the walking stick is 2" then you use a 1" to 1.25" drill to make the hole. The walking stick guides has instructions on how to add items to the tip of the walking stick. Make sure you drill straight down. Do it slow to avoid costly mistakes. Before you make your hole determine what you want to insert into the compartment and also what you plant to use as a cap to the walking stick. Making a hole too big for the cap material (rock, piece of metal, door knob handle etc. -see the walking stick making guides).