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Well since you already seem to know about the potion spending. I usually spend most of mine on scrolls, repair hammers, weapons and armor, and training. Those are the main things I spend money on in Oblivion. Add potions to the mix, and I end up broke more often than not

Spells, Training, Houses, Bribes, Repair Hammers, and some Potion Ingredients. Spells and Enchanting at the Arcane University altars.

You can buy houses too. There is one in every major city for sale.

Oops Glargg had those tucked away in his bunch.

Yeah, but we can change one letter and add "horses."

I bought armor and weapons early on but hardly anybody seems to stock the high level stuff, even at level 20+. I got a house and spent quite a bit of money on enchantments. I would have bought a horse except having to dismount every time I saw an enemy was getting annoying (I stole one to see how I liked it first). Other than that, spells, repair hammers, etc. Whatever you can't reliably find on bandits or in the wild, basically.

Beer?

EDIT: Oops, that's a potion right?

Oblivion is a bit unbalanced as far as money goes.

Early on it might be a problem. Later you really have far more than you can do anything reasonable with.

Due to level scaling (I and apparently many others dislike) after your character reaches a higher level (20 or more as a rough guess) it seems like you can't walk 20 feet without tripping over some very valuable item. So at higher levels money is basically meaningless to your character.

I forgot to mention arrows. If you are playing an archer, you will be buying a lot of them. Although I suppose that might fall under the category of weapons.

Technically (at least, according to the game) arrows aren't weapons, they're ammo. I'd count it separately if I were compiling a list.

Buy the unique items in the game, like the Tower of the Nine, which costs >30,000 gold.

Then display it in your fully upgraded Rosethorn Hall.