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Helpful answers
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Dec 20, 2015 5:20 AM in response to Steve McReaby Barney-15E,I can't find an Apple Article, but if you google, "os x move user home folder," there are lots of tutorials.
In simple terms,
Make sure your external drive is OS X Extended and uncheck the box to Ignore ownership on volume.
Set up an administrator account that will remain on the startup drive--this is extremely important as the external could fail and you wouldn't have a user to log in with.
Copy the home folder to the External drive. Do the copy while logged into that user's account so that it retains that users permissions.
Log into the previously created admin account.
In Users & Groups, right-click on the user and select Advanced Options…
Set the home folder location to the path to the new Home location, e.g. /Volumes/Data/username
While you are not changing the account name, still some similar info to changing home folder is important: Change the account name and home directory name on your Mac - Apple Support
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Dec 20, 2015 9:42 AM in response to Steve McReaby Duane,The easiest way is to install OS X on the external drive and then select the external drive as the boot drive.