A round or chainsaw file might be the cheap answer to creating the choil cutout.
As Mr. McDonald stated in a similar thread, you might wanna invest in Wayne Goddard's $50 Knife Shop book. It will take you a long way towards your first knife. That same thread dealt with what tools to acquire first. Seems to me that a belt sander, a Harbor Freight portable bandsaw, a good vise and workbench, a bench drillpress were all mentioned along with files, sandpaper, etc. Use the search function................
Good luck with it btw. post pics and ask lots of questions
Syn