I'm sure it does get easier later into it, I'm just incompetent and can't even make it that far. I was really interested in this game too, and actually like the mechanics but they're just taken too far for me to enjoy enough to power through it. If save edit worked for this I'd give it another try but I feel I've already put too much time into getting nothing done here.
I found it hard going at first as well and the bandit encounter frequency pissed me off too.
I stuck with it though and always made sure to have enough things to sell at the tavern to be to afford at least two helpings of Good Soup. Rats from the sewers and insects are good sources.
Once you get a bit tougher, Squatters in the Sewers can net you some Human Meat to sell.
One I reserve for after being able to tank that mission is Mine Monster Infestation (or whatever it's called). That can get you piles of Mutant Meat. They're oddly valuable.
You could also (for food, not for selling) is to spend a little time in the plains north of time killing bunnies. They drop anywhere from 1-4 Animal Meat. Fill up on that and take couple of naps when you need to. Heck, even bunnies give you some XP. Just about ANYTHING gives you XP in this game.
Lastly, to restore a little bit of STA (provided you have at least 11 SAT) is to take a quick rest. I spammed that when I took the Graveyard quest. Of course, I had packs of Animal Meat.
(Or you could cheat. But that takes the satisfaction out of it.)
Alternatively, sell enough things to Elise to be able to buy a blue potion.