One of the most popular ways you can make money is by trading goods from town to town. In Bannerlord different towns will have different prices for goods. For example you can purchase cheap pottery in the east to sell to the west.

best way to earn money i have 1 town and 2 castles with a combined village count of 7 villages i also have 4 workshops and 1 caravan but i am still loosing a ton of money (4,000 to be a exact). Whats the best way to make cash in my scenario here.

Getting to clan tier 4 though is going to take some work and will require a lot of renown. What I would suggest is taking a weak fief and just try to defend it. Defeat any armies that try to siege it, this way you don't need to go searching for enemies, they will come to you. Once you get tier 4 you can make your own kingdom. < >
earn castles and fully upgrade them, recruit troops or buy mercs to man your castle garrisons, give gold to lords in the barter option to earn XP in charm. buy large quantities and varieties of food to maintain high morale with quartermaster assigned as your role to earn leadership XP. #9.
What I have started doing is when fighting looters or not too many harder units I put my high tier units in a shield wall with them and the archers on hold fire, then I have a group of all the 'low tier' units move into the fight from the side/behind as the enemy hits the shield wall.
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mount and blade bannerlord fastest way to make money