I agree with Lin. Jump with both feet. Pricey tools are not required to make a fine knife. I have made several with basic tools like files. The best part of working with files over sanders/belt grinders is the the removal of material is much slower allowing you to control the direction of the project.
Remember everything comes off the Ricasso, the flat area in front of the guard. The next thing to remember is center. For most knife designs the cutting edge is centered off the Ricasso.
Knife steel is cheep compaired to the equipment most deem escential to making knives, so don't worry as much about failing as learning from every step of the process. With minimal investment you can have a go of it, a successful go of it.
Here is the second knife I made. All done with an assortment of files.
And the Third, again with files.
Any help I can give, feel free to ask.
Chris