Best strategy for using an external SSD when internal drive is too small
I have a 2020 Intel 27" iMac with a 1 TB SSD that is getting full. I'd like to get a couple more years use out of this iMac before upgrading to a newer Mac (which might be another iMac or might be a Studio).
If I buy a bigger external SSD, should I move selected files and applications to the new SSD and retain the internal SSD as the boot drive?
Or would I be better off to make the external SSD the boot drive and keep everthing on the bigger drive?
One nice thing about putting everything on the external SSD might be keeping backups simple - back up one drive and I'm done? But I've never tried working exclusively from an external drive so there may be issues I am not aware of?
Background: I am a photographer and I use Adobe Lightroom and Photoshop. Right now, I am not doing much video editing, but occasionally I do fool around with small projects. Some of the bigger space-takers on my internal SSD are: Photos=43GB; Music=31GB; iMovie Library=31GB; Lightroom Catalog=28GB. My wife is set up as an Other User=36GB. She now uses her iPad 99.99% of the time, and she has not logged onto the iMac in over a year, so maybe I should start there?
Edit: I should mention, my 2020 iMac has Thunderbolt 3 ports, so I assume that determines how fast the external SSD can be?
iMac 27″