Storage costs are the weak link in this sort of setup. Productivity apps can be fine, but as soon as you start trying to host a music or video it can be expensive.
I have not looked at different offerings for block storage but object storage has been very cheap. Say the Wasabi account gives me a terrabyte for $7/m with egress included. I am not sure whether it is possible to setup the self-hosting solutions to use that rather than VPS block storage though.