Why a Homelab is Important and How I Built Mine

Introduction

In an era dominated by cloud services and subscription-based software, running a homelab provides a powerful and cost-effective alternative for hosting personal, development, and media services. A homelab allows you to take full control of your data, enhance your technical skills, and reduce reliance on third-party services. In this post, I’ll explain why homelabs are essential, their pros and cons, and how I built mine using a combination of open-source and self-hosted services.

Initial Requirements

If you have a stable electricity supply and a reliable internet connection, setting up a home server is definitely worth considering. These two factors are essential for ensuring smooth operation.

Stable Electricity

Since a homelab operates 24/7, the system needs to run continuously. Ideally, you should have at least 18–20 hours of electricity daily. To mitigate unexpected power outages, consider connecting your server to an inverter or UPS. If you frequently experience power disruptions, an old laptop with a decent battery can be a practical alternative, as it can continue running during short outages.

Stable Internet Connection

A reliable internet connection is required for downloading and installing updates for the operating system and services like Proxmox, Docker, and more. During the initial setup, it is crucial for pulling OS and service images. While a 24/7 internet connection is not mandatory if you plan to access services only on your local network, some applications—such as Opera, qBittorrent—require an internet connection to function properly. Additionally, if you intend to access your server remotely, a stable internet connection is essential.


The Importance of a Homelab

A homelab is essentially a personal data center where you can experiment, learn, and run various services without depending on external providers. Whether you’re an IT enthusiast, developer, or someone who values privacy, a homelab offers several advantages:

Pros of a Homelab

  • Data Ownership & Privacy – You control your data instead of relying on cloud services that might track or monetize it. You can also use these real data to practice some data science and ML.
  • Cost Savings – Over time, self-hosting can reduce or eliminate expensive subscriptions to paid services.
  • Customization & Flexibility – You can configure services precisely the way you want.
  • Learning & Experimentation – A homelab is an excellent playground for learning coding, services, networking, virtualization, automation, and security and much more.
  • Performance – Running services locally can be faster than cloud-based alternatives.

Cons of a Homelab

  • Initial Cost – Hardware and setup can require a significant upfront investment.
  • Maintenance – Regular updates, backups, and troubleshooting are required.
  • Power Usage – Running a homelab 24/7 increases electricity costs.
  • Security Risks – If not properly configured, a homelab can be vulnerable to cyber threats.

My Homelab Setup

I built my homelab using some old laptops and mini PCs build. Here’s a breakdown of the services I run, categorized by function.

Infrastructure & Orchestration

I am running BareMetal Truenas Scale in one PC, and installed proxmox in other to run services.

  • Proxmox – Virtualization platform managing VMs.
  • Portainer – GUI for Docker container management.
  • Rancher – Kubernetes management tool.
  • Docker & K3s – Lightweight container and Kubernetes runtime environments.

Network & Security

  • pfSense – Firewall and router for network security.
  • Pi-hole – Network-wide ad-blocking and DNS filtering.
  • Traefik – Reverse proxy for managing web services.
  • Tailscale – Secure remote access using a mesh VPN.

Storage & File Management

  • TrueNAS – Network-attached storage (NAS) for managing my data.
  • Nextcloud – Self-hosted cloud storage and file synchronization.
  • CasaOS – A simple way to manage self-hosted applications and files.

Media & Entertainment

  • Jellyfin – Open-source media server replacing Netflix/Plex.
  • Kavita – Self-hosted eBook and manga reader.
  • Immich – Self-hosted photo and video backup (Google Photos alternative).
  • Navidrome – Music streaming server replacing Spotify.

Essential Services

  • Portfolio Website (WordPress) – Hosting my personal website.
  • Firefly III – Self-hosted finance manager replacing Mint/YNAB.
  • EmulatorJS – Browser-based retro gaming emulator.
  • Mealie – Self-hosted recipe manager.
  • Vaultwarden – Self-hosted password manager replacing Bitwarden.
  • Home Assistant – Smart home automation and IoT management.
  • qBittorrent, Opera, Prowlarr, Sonarr – Download management for media automation.
  • Invoice Ninja – Invoicing software for small business.

Development & Productivity

  • JupyterHub – Self-hosted Jupyter notebooks for data science.
  • CodeServer – VS Code in the browser for remote coding.
  • Trilium – Self-hosted note-taking and knowledge management.
  • Ollama + Open WebUI – Running local LLMs (AI models) for experimentation.
  • Gitea – Lightweight self-hosted Git service replacing GitHub/GitLab.
  • MySQL & PostgreSQL – Database servers for various applications.
  • MinIO – Self-hosted S3-compatible object storage.

Which Paid Services I Replaced

One of the biggest benefits of my homelab is that it replaces many expensive paid services with open-source or self-hosted alternatives. Here’s a comparison:

Paid ServiceReplaced By
Cloud servers (AWS, GCP etc)old laptop with proxmox
Hostinger and other web hosting servicesWordPress
Netflix, Plex, PrimeJellyfin
Google Drive, Dropbox, iCloudNextcloud, TrueNAS
SpotifyNavidrome
Google PhotosImmich
Bitwarden PremiumVaultwarden
YNAB, MintFirefly III
GitHub, GitLab, BitbucketGitea
Notion, EvernoteTrilium
AWS S3MinIO
Google Docs, Office 365Nextcloud + CodeServer
Cloudflare Zero Trust VPNTailscale

This setup allows me to save hundreds of dollars yearly while maintaining full control over my data and privacy.


Final Thoughts

Running a homelab is not just about saving money—it’s about freedom, learning, and self-reliance. While it does require some initial effort, the rewards in knowledge, control, and cost savings are well worth it. If you’re considering setting up your own homelab, start small, learn as you go, and enjoy the journey of self-hosting! You can also contact me if you need any initial help or guide to how to start.