Lainie it probably does seem at times that you need a shop full of tools to get started but the truth is that almost all of started off with something close to what you have. I've spent just about 40 years building and improving my collection. One of the most important challenges for a beginner is to figure out how to get a job done with the tools you have. In fact, that never really changes because you can always go bigger, more accurate, faster, easier to use, etcetera if you have the room and the money. As you go you'll learn more about what you're capable of and your workmanship will improve. As James said, don't despair.
Someone I consider a master woodworker once told me that a master woodworker is not someone who never makes mistakes. He is someone who is able to cover them up so that no one can tell.