If you have a local flooring company or cabinet shop, they may have some hard wood scrap flooring that you could use for handles. I found some hardwood scrap at a building materials recycling center.
As DonL mentioned, spend a little extra and get some known steel. My first knife was 01 tool steel, quenched in used motor oil. I made a 1 brick forge mentioned in the $50 dollar knife shop book. Check a local ceramics/pottery supply store that sells kilns. They usually have the soft fire bricks.
Ric