Here is my guide to be able to kill a lot of monsters at level 1:
You will probably only need 10 fg to do this.
First go to the thieves guild in the market place. Select sort method by price
and buy one wire whip. It cost 10 fg, has power 5, duration 150/150 and
always seems to do 7 damage when you hit. You don't really need any
armor at all, but if you want some armor you can buy it.
Now you go to the battle arena and press monster battle. Press begin battle.
Change bare fists to wire whip. Now press attack untill the monster dies.
When you start to get low health you stop battling and go to the temple in
the town place and heal yourself to max health for 1 fg. You will probably
earn more than 1 fg from the battles before you have to heal. _________________