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Say Goodbye to Expensive Hosting: How I Save $700/Month with Self-Managed VPS Hosting

 

Say Goodbye to Expensive Hosting: How I Save $700/Month with Self-Managed VPS Hosting

Say Goodbye to Expensive Hosting


Meta Description:
Tired of expensive web hosting fees? Learn how to set up your own self-managed VPS server, host WordPress and apps like N8N, and save up to $700/month. Complete step-by-step guide using Contabo and Koolifi.

Keywords: VPS hosting, self-managed hosting, save on web hosting, Contabo VPS, Koolifi hosting, how to install WordPress on VPS, N8N automation tool, alternative to shared hosting, budget hosting solution

Introduction: Why You Should Leave Traditional Hosting Behind

Are you tired of paying high monthly fees to hosting providers like Bluehost, SiteGround, or HostGator? If you’re running multiple websites or applications, chances are you’re spending hundreds of dollars every month. I was too—until I discovered a powerful solution: self-managed VPS hosting.

With this setup, I’ve been able to slash my hosting expenses by a staggering $700/month, all while maintaining high performance, unlimited deployments, and complete control. In this comprehensive guide, I’ll walk you through exactly how you can replicate my setup using Contabo for VPS and Koolifi for software management.

Let’s break down the process step by step—no technical experience required!

Table of Contents

  1. What Is Self-Managed Hosting?
  2. Why I Chose Contabo for My VPS
  3. Setting Up Your VPS: A Step-by-Step Guide
  4. Installing Koolifi: Your Control Panel for Easy Hosting
  5. Deploying WordPress with One Click
  6. Pointing Your Domain to Your VPS
  7. Installing N8N for Automation
  8. Benefits of Self-Managed Hosting
  9. Advanced Hosting Options and Resources
  10. Final Thoughts: Take Back Control of Your Hosting

What Is Self-Managed Hosting?

Self-managed hosting refers to renting a VPS (Virtual Private Server) where you install, manage, and control all the services—instead of relying on a traditional hosting provider’s panel. Unlike shared hosting, you are not limited by CPU, RAM, storage, or arbitrary rules.

This model is ideal for:

  • Developers
  • Tech-savvy entrepreneurs
  • Agencies hosting multiple client sites
  • Bloggers looking for more power and flexibility

With tools like Koolifi, self-managed hosting becomes beginner-friendly—thanks to automated installations, a clean UI, and one-click app deployment.

Why I Chose Contabo for My VPS

Contabo has earned a reputation for offering unbeatable pricing and high-performance VPS plans. While other companies charge $20–$40 per month for a decent setup, Contabo starts at just $6/month—with scalable resources.

Key Benefits of Contabo:

  • SSD-powered VPS with up to 8 vCPU cores and 30 GB RAM
  • Global datacenter locations
  • Transparent pricing
  • No surprise fees
  • Supports Linux distros like Ubuntu, Debian, and CentOS

💡 Tip: Start with their Cloud VPS plan, then scale up as your needs grow.

Setting Up Your VPS: A Step-by-Step Guide

Ready to launch your own server? Here's how to get started with Contabo and set up your VPS in just minutes.

Step 1: Create an Account on Contabo

  1. Visit Contabo.com
  2. Go to the Cloud VPS section.
  3. Choose the $6/month plan or higher, depending on your resource needs.
  4. Select Ubuntu as your OS.
  5. Enter a strong root password.
  6. Proceed with the checkout.

Within a few minutes, Contabo will email you with:

  • Your server’s IP address
  • Root login credentials
  • Access details

Step 2: Connect to Your VPS Using SSH

You’ll need an SSH client. I recommend using Termius (free and cross-platform).

  1. Download Termius for your operating system.
  2. Open Termius and click on New Host.
  3. Enter the IP address provided by Contabo.
  4. Use the username: root
  5. Enter your password and connect.

And just like that—you’re inside your server!

Installing Koolifi: Your Control Panel for Easy Hosting

Koolifi is a game-changer for self-hosting. It’s a free platform that allows you to deploy WordPress, APIs, and databases with just one click.

Why Koolifi?

  • Free and open-source
  • One-command installation
  • UI dashboard for managing everything
  • Built-in SSL support
  • Supports domains, databases, services, and cron jobs

Step-by-Step Installation

  1. Visit the Koolifi documentation.
  2. Copy the one-line installation command.
  3. Paste it into your SSH terminal.
  4. Wait ~1 minute.

Done! You now have a full control panel installed.

Access Koolifi Dashboard

  1. Copy the URL from the installation message.
  2. Open it in your browser.
  3. Create an account.

Now you're ready to deploy anything—from websites to full web applications.

Deploying WordPress with One Click

Let’s start by installing the most popular CMS in the world—WordPress.

Step-by-Step Guide

  1. Inside Koolifi, click "Add New Project".
  2. Name it (e.g., “MyWebsite”).
  3. Choose “Production” environment.
  4. Click Add New Resource > Select WordPress.
  5. Set site name and credentials.

In a few seconds, your WordPress website will be live—on your server!

Pointing Your Domain to Your VPS

To make your site publicly accessible, point your domain to your server IP.

Using GoDaddy (or other registrars):

  1. Log in to your GoDaddy account.
  2. Go to “My Products” > DNS settings for your domain.
  3. Add or edit the A Record:

    1. Host: @

    2. Points to: Your VPS IP address

  4. Save changes.

Now return to Koolifi and:

  1. Open your WordPress resource settings.
  2. Replace the default domain with your custom domain.
  3. Save and deploy.

Automatic SSL will be installed for free.

Installing N8N for Automation

Want to automate tasks, connect APIs, and build workflows? Install N8N, an open-source automation platform.

How to Install N8N:

  1. Go to your Koolifi project dashboard.
  2. Click New Resource > Search for “N8N”.
  3. Enter a subdomain like n8n.yourdomain.com.
  4. Update your DNS A record:

    • Host: n8n

    • Points to: VPS IP

  5. Save and deploy.

In under a minute, you’ll have your own automation tool live!

Benefits of Self-Managed Hosting

Still wondering why this setup is worth the effort? Here are the biggest advantages:

  • ✅ Save $500–$1000/month on hosting costs
  • ✅ Host unlimited websites and apps
  • ✅ Install services like databases, automation tools, and APIs
  • ✅ Full root control and flexibility
  • ✅ Free SSL and custom domains
  • ✅ Improved performance and uptime

With Contabo + Koolifi, you control every layer of your hosting stack.

Advanced Hosting Options and Resources

Once you’re comfortable, explore more advanced configurations:

  • Set up your own SMTP server to send unlimited transactional emails
  • Host Node.js, Laravel, React apps, and more
  • Install MongoDB, MySQL, PostgreSQL for scalable databases
  • Deploy tools like Uptime Kuma, Docker, or Gitea

You can also upgrade your Koolifi dashboard or explore other free self-hosting panels like CapRover, YunoHost, or Cloudron.

Final Thoughts: Take Back Control of Your Hosting

Web hosting doesn’t have to be expensive or restrictive. With just $6/month, you can host multiple websites, build scalable projects, and deploy anything you want—without being locked into overpriced plans or limited control panels.

By following this guide, you’ll not only save hundreds of dollars but also gain valuable technical skills and freedom.

If this setup sounds overwhelming, don’t worry—I’ve created a full course that dives even deeper, walks you through more examples, and includes advanced configurations.


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