Having very sharp tools is one of the most important aspects of proper traditional woodworking with hand tools. Many beginners think that they stink at woodworking, but usually they are just using dull (or improperly sharpened) hand tools. To start off with I recommend buying quality sharpening supplies for sharpening & honing your chisels, hand plane irons, and handsaws. And I’ll help you save money by avoiding systems that don’t work as well.
Once you have the four aforementioned handheld power tools in your arsenal and you've had time to get comfortable with using them, its time to make your first (and likely most important) major tool purchase. The table saw is the heart and soul of every woodworking shop, the centerpiece around which all of the other tools are used and organized, so you'll want to buy the best table saw that your budget can comfortably afford. Take the time to learn which features you really want and the table saw that best fits your budget and your needs. This article will show you the most common features, and how to determine what features you need and how to know if those features are really well built, or simply added on to the saw because they are selling features.
Wooden mallets are mostly used for hitting your chisels when cutting joints (like dovetail joints or chopping mortises). You should never hit a chisel with a metal hammer. Build or buy a mallet that is made of fairly hard wood (e.g. maple, oak, beech wood, etc.), that will feel well balanced in your hand, and that gives you enough weight to chop with your chisels.