I hear ya. First starting out can feel a bit daunting and finding actual roadmaps for "This is how you actually do X from step 1 to the end" are few and far between.
That was one of the things that launched this site a few years ago - I was desperate for a step-by-step written guide on how to transfer data (like an ADF file found online) to an actual floppy disk.
Anyhoo, I'd sit down and ask yourself which games you really want to play. I can't remember if you said this or not - but if you don't have the front 256kb, you really really need that. Once you have that, having an extra 1 or 2 (or 8) is a pretty sweet setup for floppy-based games. That could keep you going for some time right there.
But if you're itching to play Eye of the Beholder II, for example, then we'll need to sort out your hard drive situation. If you're into games made back in the 80s, though, a lot of them will work just fine with your machine once you get that RAM in there.
Deluxe Paint III would definitely be a lot better on a hard drive...
So, this is a little going down the rabbit hole, but a friend of mine uses the Wicher 500i with his A1000, which gives him 8MB RAM, bonkers acceleration and a few other tid bits. He's actually mixed it with a machine that is using the coveted Rejuvenator, so it's a completely slick setup (and nothing hanging off the side - all internal). Anyway... there's a dream for ya.