The above suggestions are great. One thing I might add is make small investments first. When I started (and I'm still pretty new) I bought lots of stuff I don't even use. The direction of your interest will dictate the tools.
If your interested in tooling/carving I would (after visiting tandy like mentioned above) do some investigating. Amazon has the deluxe adjustable swivel knife for 9 bucks and a set of tooling stamps for less than 20. I just bought a set of 4 diamond chisel for less than 20 bucks. This was after spending 25 a piece for chisels at tandy that are too small for my current project. Granted I will use the more expensive chisels when the time comes and the cheap chisels aren't as nice but they fit the current bill.
So, go slow. Don't dive in before you find out where your interests lie. If you just want to do sheaths for a while then the tandy deluxe kit will get you by for a good while.
Back to the tooling note. If that's your interest, these are some things I learned immediately.Don't start out with tiny carvings. They just exaggerate the messy parts. The swivel knife and other tools will be easier to learn on something 5 x 7 inches rather than something 2 x 2. Tool on a piece larger then what your image is. You need to be able to hold it down while you're working on it. I suggest sacrificing a few bellies or even a single shoulder to the learning process.
Lastly, you could do worse than spending a month here just researching and learning before you ever spend a cent. You will learn a multitude of what to buy and how to apply it.
So, leave the expensive tools for later, start slow, and enjoy yourself.
P.s. the deluxe kit does have a swivel knife and basic stamping tools. I didn't realize that when I posted.