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In short, money is not hard to earn.
Chilis cost 92 gems. Buy 4, plant, water through stage 1 *and* 2, and you'll sell them for 2,400 gems.
Rinse, wash, repeat.
Easy money. Wish I could get that rate of return on my 401k.
Are you spending money on decorating your home/island? Early on, you should ONLY be spending money for quests. Even for some quests where you have to place X number of fences, you can sometimes cheat by picking up fences from another part of the island and putting them back down. Wait until you have a quest to rebuild a building/a bridge, because that ♥♥♥♥ is expensive. There's a quest to upgrade your tent too, so wait. Quests will give you EXP & gems for your trouble.
A better way to earn gems early is catching bugs and fish. You can catch up to 99 of each every day. If you want the museum achievements, you should save 1 of each different kind you catch. It may not seem like a lot of gems, but trust me, selling bugs and fish add up. Don't bother buying bait unless you need a specific fish.
You can also earn money at the Town Hall. You can make 50 gems depositing 100 gems every 5 minutes at the bank. You can also play the stockmarket mini-game with Gordon Gecko (ha), just buy low and sell high.
I cannot stress enough, work on earning EXP not money. You want to get VIP/lvl 15 asap. Once you hit level 15, you get unlimited resources plus a 20% discount on everything in the store. You also get free peaches, which are the most profitable fruit in the game.
(Speaking of fruit, never buy Apple, Orange, Banana, Juniper, Acai Berry, Beechnut, Peach or Cherry seeds from the store. You will definitely get them as level rewards or from trees that are already on the island.)
The only way you would lose money is if you are paying to speed up a timer, either on the watering can or the chili. Don't. Do. That.
If you don't have enough gems to start growing the chilis, catch and sell some bugs and fish.
Make sure you grow the crops to their last stage before you harvest them, and like Brian said don't spend your gems speeding up the crop growing or anything like that if you're trying to MAKE gems. If you keep accidently spending gems and speeding up things, you can turn off that gem button over things somewhere in the settings.
Brian's patented guide to making gems in Castaway Paradise:
1. Launch game
2. Load save
3. Go to settings
4. Find "Speed Up Timers With Gems" setting and TURN OFF