Well, first thing is
DON'T PANIC!
While the ultimate tool in painting is an airbrush, it is also "ultimate" in price!
If you have a place that you can close off and ventilate (and not get into trouble with your mother/wife/roommates) then a compressor, airbrush and paint mask is the bare minimum to work. While paint IS toxic, there is also risk assessment to consider. You may be exposed to greater concentration of toxins in your kitchen, than what you'll be exposed to painting for ten minutes. Choosing to invest in a full blown airbrush setup is daunting, but with care you can build up your inventory over time. I started with a used airbrush, cheap compressor and a cardboard box! With a fan behind you and an open window (and a loving wife!) I made the jump into airbrushing. In those early days I only used paint masks, although a decent respirator can be found for as little as $25-35 and is strongly recommended.
Proper thinning and investing in good paint brushes have served many a modeler with years of enjoyment using nothing more than paint brushes. Check out Scott Espin's (espins1) model in this thread about brush painting with Tamiya Acrylics, and Tamiya are considered the WORST at hand brushing. I agree with Scott that excellent results can be your reward if you follow proper paint thinning and brush techniques.
This is a relatively inexpensive hobby, if you compare it to golf, and don't go crazy buying everything in site.
You don't need every single color of paint made, most kits will give your paint codes on the box, or that can be found online at each maker's website. Try to stay within one genre to begin and start with a simple kit like a Sherman tank in OD or a Panzer in simple Grey.That will keep the initial paint cost down, you can add more as you go.
You'll need a good Xacto knife with a #11 blade to start with. Don't get sucked in by the cheap kits with a gazillion types of blades. Most are useless and the quality isn't good. $5 should be ample. Buy blades in bulk. I get them by the 100 pack for $25. They can also be resharpened, if you put your time to it.
I found inexpensive tweezers at Princess Auto (Harbor Freight is a similar company in the States) in a variety of styles for under $5. You don't need name brand tweezers that cost three times that! The set I found has the kind that have to be held open (the word for them is escaping me at the moment!) which I find useful when holding decals.
Cheap sanding sticks can be made with carpenter glue, sandpaper from the hardware store and popsicle sticks. Or hit up the makeup counter at the local drug store.
Invest in good paint brushes. $30 will get you a pretty good selection. Use the big discount coupons available for Hobby Lobby or Michaels. A good paint brush is vastly important!
You can probably get a pretty decked out model bench started for under $100 and can add in more paint, glues and supplies as you go.