Hey! I'm glad you like the style I went with! As for the enemies, unfortately you won't be able to see their health, I had to use the battle system that RPG Maker 2000 uses make sure everything was made on time and it uses a system similar to the OG Dragon Quest and not being able to see enemy health is one of the old school quirks that come with it unfortately. My main project though I plan on having enemy health visible(making my own custom battle system for that!)
So how the game works is that each new area you visit, you come across more and more powerful enemies. The first area the enemies have at most 14 health(which is the Wolf which I would think is what you came across) except the boss area which on rarer occasions you may across the Boss's minions which are tougher than the standard creatures you find! And of course the boss itself of that area.
You actually start with gold and items you can sell for gold, which you can then use to buy better equipment with which will help you in fights, the spear can enhance your damage quite a bit!
Anyway, I hope this helps clear some things up!