Many web domain hosting companies offer service to get the domain name and the hosting account in a combo package. These can be a shared plan, reseller or VPS account. You may find a need to upgrade or change hosting services in the future, If this is the case, then it may be better to keep your domain at a service like GoDaddy, and just point it to your hosting account like HostMonster.
RAM: VPS servers are advertised with RAM values just like computers are in a computer store. Host are rather unforthcoming when you ask them how much RAM you need but I would say 500MB RAM would be satisfactory for a WordPress site that doesn't get much more than 500 visitors a day.
Per Chip (and my own research) those base services don't include things like backing up and archiving my data, installing and upgrading applications, or even testing my applications for compatibility. They don't include security Cloudways patching firewall services anti-virus software or the use of redundant servers. They don't include user management. They don't include 24/7 support. Amazon offers these, and many other services. But all are at an extra charge. Chip says that when you add the cost of these services to EC2's base price, the annual expenses are much closer, if not even a little higher, than using a typical managed desktop company like Independence IT.
Secondly, there is shared company. There you will have to share your space with other users of that particular industry. You will not have your own separate space. In this case you may read more have to share the Central Processing Unit and Random Access Memory of the same server with a lot of other people.
WordPress is written in a programming language called PHP which accesses the content from a MySQL database. As it is continually extracting packets of information from the server and elsewhere, WordPress can need more memory that a straightforward static HTML site.
Including Microsoft Office in your Office 365 subscription seems like a good idea and it may be for some clients that have very seasonal workforces. Do the math before you decide on this course though. You have other options for subscription based Microsoft Office, like Open Value Subscription and sometimes Services Provider License Agreement (SPLA).
Conclusion: Free is not free and the best solution for most people wanting to host a website is one of the Shared Hosting plans from a reliable company with excellent support. Be sure to read the other articles on how to host a website.