I did a very similar setup very recently. Its not bad. I did try piefed first as some people suggested, but had some issues and it felt like it just wasn’t ready yet. I switched to self hosting lemmy and really like it. I also went with Brevo for email (I started with sendgrid, would not recommend).

Main difference for me is I am using cloudflare (they are my registrar and they allow me to deal with the CGNAT at no extra cost which you don’t have to deal with not to mention a pretty solid WAF for free tier). You may want to implement a WAF of some kind to keep the federation in check. I federate both lemmy and a matrix home server and it doesn’t eat up too much bandwidth.

I also like saving money, so a VPS is something I was trying to avoid. Personally, I don’t think the VPS does a much for securing your home network as people are trying to say here. It is another layer of security, but it’s not a panacea. Not saying I’ll never try it though.