Difficulty level: normal
Months: 146
Culture: 35
Prosperity: 40
Kingdom: 100
City funds: 8888
Pop: 3536
Score: 3069
As posted by others, the first four years I was close to bankruptcy too. Indeed I had to spend all of my personal savings of 12,000. I think that you need at least 10,000 on this level and maybe twice as much on hardest.
I started building two 10x4 blocks in the NE corner. Built one mine of each raw material (three gems), two woods, four hunters and one luxury. First I accumulated goods (except for gems and luxury - sold it right away) to be able to meet any demands from the Pharao in time. Important if you are likely to go in debt long and deep.
I regarded this settlement as a military base: so I didn't do more then preventing them from getting sick or leaving. All excess labor I used for police (25 stations eventually!)and military (inclusive a academy). Started building an archer right away to the north of my settlement. Sarted importing copper (maintain 600) and three smiths when reaching 10 archers. Started building one infantry thereafter, then one archer again and then two more infantry - all to the north of my settlement.
As for the economy, As soon as I had more people around I expanded on (cheap) choppers, and later I started making papyrus (cheaper than opening new gem mines).
I didn't build a palace, mansion or temple until I reached a regular profit (year six or seven). I threw however parties at the gods all the time. This really pays off.
Military management pays off as well. In my case most invasions came from the N or NE. As soon as they reached the settlement, I noticed that they stop to fight the massed police. Mostly I had my archers behind them and my infantry (slower than archers) were always in time and in strenght to finish them off.
Later on you have to expand in order to get additional population (initial base 1,700). I did so in the south, where there's plenty of space to mine granite and hunt for game. Here too I build abundant police (10 stations in the south - also to fight off hyenas) and one infantry - fortunately no threats here. Between those settlements I built one tiny settlement where I put the temple.
When I finally erected the obelisk, I started producing pottery and expanded on entertainment, reaching 3,500 on completion of the obelisk. The obelisk I built in the northern settlement as well - as you don't need to have the granite transported (whoops, there it is).
The key here is I think not to make a nice city, but to build a concentrated settlement, protected by as much police and military as possible and expanding as quickly as possible once you can sustain a positive balance.
Well, that's it. Thanks for reading.