Presumably as long as the server your VM sits on has more memory than your VM, you can increase memory easily. But the maximum might only be what a dedicated server would have given you from the start?
Edit: I just checked, seems Hetzner has a server with 16GB RAM for 49€/month (64$). The maximum Linode VM with 8GB sets you back 320€/month.
It seems the 49€ is the cheapest standard Hetzner server atm, but you can get cheaper ones via their auctions. Of course then if you need more memory you have to move server, not sure how complicated that really is...