I've reached the siege of Arretium. I've more fame that I know what to do with (80000), but money is always in short supply. I assume this is normal? Will I ever need all that fame?c

What is best?
1. Fully equip your starting units (Militia, Skirmishers, Scouts).
2. Disband them asap and put the money towards better units.
3. A mixture of 1 & 2; equip your starting units but also try and save at the same time for better units.
Currently I'm doing 3, and I have a Legionary, Archers and 2 Hastati, as well as my starting units (I did disband one Skirmishers when I got the Archers). It seems to be going OK (I win most but not all battles first time, which I like).
However I'm starting to get seriously outnumbered

You get attached to your starting units after you've seen them through a number of battles and levelled them up and spent hard earned cash on them, so it is a wrench to disband them. Oh, well, they probably deserve a peaceful retirement.