Get a decent shared host.

Just because Godaddy sucks doesn't mean that all shared hosting sucks. NearlyFreeSpeech.net is fine for most people, or Amazon S3 if you're into AWS / webgui stuff.

If you're actually using a decent amount of bandwidth (ie: image hosting), something like Hawkhost.com would be good. Just gotta stay away from EIG (https://en.wikipedia.org/wiki/Endurance_International_Group), which is a conglomerate that's buying up all the shared hosts and making them crappy.

Bam. Now you have economies of scale AND far cheaper hosting than any VPS.