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I have a good strategy which seems to work.
I level up all my characters, to the SECOND-HIGHEST LEVEL (this is crucial to not go beyond this point) but don't use any of their skill points. Then when it comes to a battle, I do as much damage as I can first, and when my health is really low, I level them up using their skill points equally, but focused on specific things they will need for the battle. And when they level up, they regain all their health, so it helps without wasting a few turns with a medpac.
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