A dual function binding machine for making journal notebooks at home includes a hole punching mechanism and a binding mechanism. A punch die includes a plurality of rectangular punch teeth in a graduated configuration to minimize the amount of force required to penetrate through the journal book materials. A guide provides different positions for punching through covers, inner pages and continuous punching of both. This allows the perfect alignment and fit of the outside covers with the inside pages. A spring biased lever operates the punch die in a horizontal direction. The binding mechanism included in the same machine has a vertical outer vise wall that is horizontally movable to compress the binding material to the pages and covers of the journal notebook.