Hi Scott. If you ask 100 people here the same question, you're likely to get 100 different answers. My suggestion is to get some books and videos on holsters and how to make them, and if you plan on hand stitching, I highly recommend the book "The Art of Hand Sewing Leather" by Al Stohlman. I consider knowledge one of the best tools of all. Get some basic tools from Tandy or Hidecrafter (and yes, they are pretty much "economy" grade), learn how to use them, and see if the tools you get will work for you. If not, then you haven't invested a lot. If you find they work well enough for your needs (and many people do), then you will have some cash left over to invest in other goodies for your hobby. Just my 0.02.
Enjoy your hobby, and please share some photos of your projects with us. We love pictures!
Hilly