I realise this may not be very helpful, but were any of those three things essential?
Do you really need a domain name? my_fantastic_blog.blogspot.com (or similar) is good enough for some fairly big-time bloggers (?)
How about hosting your blog for free (e.g. blogspot...) and save hosting bills (?)
Do you really need to spend time working on a custom template? Plenty of serious bloggers use totally b(l)og-standard templates... stop spending your time in PS and start spending time on content (?)