Fastmail costs $40/yr. You can get a half-decent VPS for that with a few bucks to spare on Tarsnap.
A couple of weeks ago there was a dedicated server offer from online.net floating around for €1.99/mo http://lowendtalk.com/discussion/33122/1-99-%C2%A0dedicated-...
They only provide IPv6 though, but it's trivial to set-up forwarding using Cloudflare's v6 to v4 proxy service.