I'm at the beginning of my journey but need storage space, where can i find?

Here a good web page with some basic information about houses: http://www.uesp.net/wiki/Oblivion:Houses

cheers seems like my best option is the Imperial city and the storage upgrade, its hard making gold

Hard making gold???
What the......
Loot what you kill and sell.
Go into ruins, caverns and mines and look, find and open chests.
Go to the arena and fight for life.
Its not that hard to find gold. All you have to do look at the right places.

As for somewhere to put your stuff, there a ring road called The Red Road. Near the long bridge there is a burnt out building and upstairs there is a chest. It safe to put your stuff there. Well in my game anyway.

You can also make useless potions like crazy and sell them. Making gold in Oblivion is not hard, trust me

You don't have to buy a house if all you want is somewhere to store your stuff. There's plenty of safe storage in the game. There's a simple test to determine if a chest or something is safe. Put something like an arrow in the chest in question, then go away to the other side of the world and wait for 3 in game days. Go back to the chest. If your arrow is still there, it's safe. If the arrow isn't still there, it's not safe.

Jaufree's chest at Weynon Priory is safe to store stuff in until you get 5600 gold for the house in the Imperial City.

And that house doesn't have to cost that much right away. You can buy just the house (which includes the bed) and the storage option first (under 3000 so far), and then add the other options as you get more money. Bed and safe storage are all you really need.

If you are in need of gold Alchemy skill is your ticket. Start gathering foods, and plants, and other alchemical ingredients. Make a bunch of random potions not caring what goes into it. Sell the potions for gold! Once you hit 100 in Alchemy skill, you'll only need 1 ingredient for potion creation. If you use Alchemy as a source of revenue you'll be rich, and hit 100 in the skill pretty fast, making you even more rich.

It's mentioned at the bottom of the page Pseron linked to. Aleswell Inn and the Zero Visibility quest are close to the Tutorial exit and simple at any level. Just can't put stolen items in the chest in 'your' room the inn keeper gives you.

Also join all the guilds and take all their stuff and sell it. Mages Guild in particular has lots of (relatively) expensive items.