Apparently I'm playing the game wrong, then. 1) I keep facing groups of enemies that are twice my level (they're 6 while I'm 3), and it's quite difficult to avoid getting squished to oblivion. 2) I can't afford skills unless I go on a looting spree, stealing paintings from every wall in town.
You're probably trying to do the quests in the wrong order. Unfortunately they aren't too helpful about pointing the right direction other than giving you a bloody nose every time you go the wrong way.
