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1) First you need economy. Then you use it to build army. Your starting stack is more than enough to scure sources needed. If it does not for you, then it is the first step to improve.
2) Ideally, IMO, high priority should be finding the closest city (check if there is any interesting T3 unit / spell page) and farm rep with this city as quick as possible. Once you have high standaing with the city - recruit the units you need.
3) T1 units usually die at some point in the game (they usually have too few HP or too low stats to survive AoE damage from higher level enemies). So for me, this is the natural process. The longer the game lasts, the more T2 and T3 units I have and T1 units die or explore for me (I leave them at cities, so I have always access to them or leave as spies).
4) T2 units with high level and good buffs (glyphs, potions, lvl ups) can easly face T3 units. What is more, very often there is a lot of synergy between T2 and T3 units and you need to keep T2 to stay versatile.
5) Each city has something interesting to offer. The easiest way to level standing with the city is to build lodge which covers inns. Most inns build reputation with given city (you will know by crest on the inn building). You can boost it with specific spells (gold to reputation) and by doing quests for the city or killing enemies around it.
6) I am playing as Arti now and I found city with some Fire Elemental guy that I bought quite early (there were 2 inns I taped, so my rep was growing really fast). With this T3 unit clearing all places I need was piece of cake.
7) Very important is scouting, so you know who you are gonna face in coming weeks and what you need to succeed,
So, long story short:
If you cannot stand upkeep of T1 units, as you say 10gold/day, it means you are doing something wrong economy wise.
If you can afford T1 units next to other units, use them as spies, scouts and city chokepoints that let you make a purchase each week.
At worst let T1 untis die on battlefield, so they do something useful before they die :)
Good luck!
And I have a Circle Mage getting warning plotting against me .... the other ones 75%+ green ..... if had better units would push forward to try and take its main tower, but it is this mage I said has very strong units. I think I am like week 22 or so ..... may not have much choice soon.
There is a room extension that suspends upkeep for units in your domain. Also, if you are trying to raise your rep with a city you have other options. The local inn will give 2 rep a day if in your domain, there is a mentalism spell that turns mana into rep, and failing all that you can leave monster spawners alive to get the meager rep from killing them.
And even with my best tier 2 elements, their buffs and 2 extra units they get, destroyed me so quickly, had no chance. I have been beating 90% of battles, but once hit their units it was clear I have no chance .... but without gold game over, and now my many is getting low, so I doubt I will be able to finish the game (or get even close at this point).... This is my 2nd try, and at this point , the money management is taking all the fun out of the game for me, so likely will stop playing it all together..... such potential for tactical game!
They made 2 big errors in my opinion, gold upkeep cost (which forces me to play a easier combat game, need a slider, indep. of combat difficulty) and huge spike in circle when attack you... not even close battles .... went from winning 90% to 90% loses and no gold left over to perhaps buy a different type of troop for the one attacking me, so stuck with what I have... I know people just go online and cheat in sense vs. best tactics. They find the one unit that turns the tide, one place to put tower to get all gold need, the one race to get, the one type unit against this boss ..... it is just a recipe, not a tactical game. Big mistake is not letting every unit upgrade to Tier 3 so not having to ditch units later, that would provide many ways to evolve (kind of the AOW3 method). If game was balanced properly there would be many ways to win, every race could beat them all.... it really needs to be re-balanced! And if not done soon, AOW4 is coming out soon and people will leave this and go there ..... TBD. Overall really like the graphics and general combat ... it reminded me of AOW3 which is why I was so excited.
I have so many strategy 4x, tactical type games where you manage the money (Total WH3 good example), but it only is problem in beginning of game , not crippling once past midpoint of game.....
PS Thanks for you help, this is not directed at you in any way, just saying so disappointed in mid game, which will likely prevent me from investing any more time .... but what I read, it only gets worse once another mage declares war on you.....
I restarted about a half a dozen times before I finished my first game. You aren't the first person to complain about upkeep. I get the complaint about having to learn "the strats" that people on here use being unpalatable. For your specific problem though, all you really need to do is play artificer for the glyphs or go mentalist for the spell. You can get two pages of mentalist every plathrough via seven keeps. Either one of those will deal with your immediate problem and let you discover future solutions on your own. Alternatively, you can download the reroll mod and choose your level up rewards instead of RNG. You can have followers around lvl 4 onwards IIRC.
There are quite a few options now in the sliders. Combat (tactical map) difficulty, map wealth, game progression time (campaign map difficulty essentially), and you can modify the frequency of targeted attacks on your tower.
Leveling units up in tiers has been suggested before as well. Devs were positive of the idea but unless they said something since I wouldn't count on it. As for balance, that's all pretty subjective. Not to mention dependent on what difficulty you are playing on.
I'm not looking at your situation but I imagine you've made too many mistakes to really undo them at the point you're at. I'd suggest that you start over and take note of the choices you made that lead you there but you are in charge of your own entertainment.