How Do I Set Up a New Mac With a Home Directory On an External Hard Drive?

I got a new Mac Mini and the internal SSD is not that large (256 GB). I want to have multiple users in my family with their own profiles and so I want to set it up with my “Home Directory” on an external drive. And we might put each profile’s “Home Directory” on the external because we all have lots of data.
Can you tell me how or do a video tutorial on how to do this? I’d like to set it up this way from the beginning because I’ve had trouble moving the home directory after it has been set up with a profile.
And yes, I did use Carbon Copy to move the whole “Home Directory” including the Library.
Thanks for your help!
I think I answered this but the internal drive is not large enough to store all the data of each family member and it would be better preserve all of our information together in each of our Home Directories. And also, presumably, I could upgrade our to our next Mac just moving my Home Directory to another Mac.
—–
Marty Vondrell