The Wizard's Companion,
You'll start in Motorville with a tutorial on moving; run over to Philip and talk to him to proceed. Afterward, you'll be introduced to the mini map and local map as well, so use them to locate the yellow star on the map: Oliver's house, which is to the south and west of your current location.
Watch the scenes here, then you'll regain control at night. You'll be given a quick tutorial on the Main Menu, as well as saving your game, so go ahead and go to the Main Menu, then press START to save! Easy enough!
: You begin with [OLIVER'S CLOTHES] and a [FAIRY SUIT] in your Important Items of your bag.
Leave the house and make your way to Phil's garage, as marked on your mini map. Watch the scene on the way there, then make sure the coast is clear to your west and south before triggering another very long set of scenes. After those are finally out of the way, you'll regain control inside your house.
Head downstairs and check out the fireplace, where you'll uncover the mighty tome, [THE WIZARD'S COMPANION]! Go ahead and put your name (or anything else you like) inside of it, then it's off to find something brown and sticky--like a stick--to substitute for a magic wand!
Note: With The Wizard's Companion now in hand, you'll be able to collect different pages from all around the world to put inside of it. They'll help you along your journey, anywhere from spells to bestiary entries to just fun little stories.
Drippy will be your destination/guide, so follow him around for a couple of stops, talking to him whenever he stops leading you. Along the way, you'll learn more about the Bottomless Bag that will contain all of the items you come across in your journey. Afterward, make your way east for another short scene, where you'll then have to talk to the green-haired girl from earlier. Thanks to her, you'll then obtain the [OLD STICK] you need!
You now need an open space to cast the Gateway spell, so make your way north, east, and north to the town square. Here, your Spells menu will automatically pop up (in the future, you need only press the SQUARE button to open it,) so go ahead and choose 'Gateway' to set up a gate to the other world!