I chose the "Apply for Myself/Yourself" option of the spousal visa, however, it is asking how much I make monthly? Shouldn't it be asking how much my fiancee/soon to be wife is making monthly?
As has been said, Appendix 2 is for her employment information (financial requirement category), plus your UK accommodation and your relationship history.
The online form is generic and only asks questions about you and your history. It asks for your employment information anyway, even though it can't be considered for the visa... because for some visas, they require your employment information.
Also, when you get to the part about parents' details, it means YOUR parents not your sponsor's... it's just worded badly (the question is to make sure you don't already have claim to UK citizenship through your parents).
I feel like the Employment section should be for her, not me. Do I need to start over again but choose the "Apply for Somone Else" option for it to have her Employment/Financial information?
The Apply for Someone Else section is for situations where the person filling out the form is not applying for a visa, they are just completing the form on behalf of the visa applicant. For example, a parent completing it for their young child, or a lawyer completing it for a client.