If you want something even cheaper, check out https://www.time4vps.eu/pricing/#!
If you purchase a 512MB RAM machine for two years it is €0.99/month!
If you purchase a 512MB RAM machine for two years it is €0.99/month!
Edit: oh and don't expect much customer support help for 99cents per month, even if their customer support is located in Cambodia.
Time4VPS is essentially the international brand of the largest ISP in the country.
I was sceptical at first, but I have a VPS running there for a few months, serving 100k hits per day, with no technical problems from their side so far.
I just used their support once, but they responded in minutes.