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Clear the area where you're going to put the compost bin and, if necessary, level the ground using a spade or a rake. You need to stand the bin on bare soil, not paving. Add a base of chicken wire if you are worried about rats getting in.
Take a pallet and stand it on its long edge to form the back edge of the compost bin. Push a stake through the two layers of the pallet at either end, using a sledgehammer to drive them firmly into the ground - about 20-30cm deep.
Position the remaining two pallets at right angles to the first to make the sides, butting the corners tightly together to stop compost spilling through the gaps. Fix in place with stakes in each corner, as in step 2.
All you need is a bit of time, some basic tools and some old pallets.
To keep the structure stable, wire the pallets together at each corner. Trim the tops of the stakes with a bow saw.
Wire the last pallet onto the front of the right side pallet to make a gate - you'll need to open it when you want to get to the compost - and start filling your bin with garden and kitchen waste.