Also how does combat work, i am kind of confused on what the sword shield and hourglass symbols mean. sorry for the dumb questions lol. love ur game <3 :D
Hey there Shadowed_Eclipse, thanks for the motivation :D.
When you craft an item that can be equipped, like the Dagger, go to the Inventory, click on the item and select Use/Equip. This will equip the item giving its stat bonuses and special effects.
To unequip, head to the Equipment window instead, click the item and then select Yes when prompted to unequip.
For the combat, it is a bit complex, when you start the game, as soon as you arrive at the island, a Tutorial will appear asking if you want to do it, I suggest you play trough it to learn the overview of the combat mechanics :).