Chrome is using less than 500 MB of memory.Stop using Chrome, keep it only for final testing and use a more performance focused chromium variant like Opera GX or MS Edge for the heavy work, you'll save a lot of ram the can be better used. Im doing quite a lot more that you on my base m1 Air and it works fine.
Google: Our Chrome browser is now faster than Safari on macOS
Google says Chrome is now 43% faster on Apple's M1 Macs than it was 17 months ago.
www.zdnet.com