Now, having a custom domain name using the Blogger platform is as simple as a couple of clicks. One of the reasons WordPress gained so much popularity is the ability to have custom domain, but Blogger has stepped up to the plate and even made it easy.
If funds are tight, you can get a 100% free blog from Blogger and put as many different revenue forms on it as you want. At any time such as once it starts earning some money, you can publish that very same blog to a Custom Domain rather than the blogspot.com one offered by Blogger. Blogger will even automatically redirect your blogspot.com domain to the custom domain, so there is no risk of losing traffic from the move.
To set up your custom domain in Blogger, go to the Settings Tab/Publishing and click on Custom Domain. You have the choice of purchasing your domain name from a third party registrar like GoDaddy or directly from Blogger. Personally, it seems easier to purchase from Blogger, but might not be the cheapest.
You also have the option of purchasing third party hosting or using Blogger to host. I HIGHLY recommend you use Blogger to host. There is talk that they will be phasing out support for third party hosted blogs, plus Blogger offers unlimited space and bandwidth, all for free.