RAM has always been the thing that improves the computing experience, and I can't imagine that's any different with the M1. As for storage - realistically, how much do your really need on your MacBook as a 'daily driver'? Do you routinely load your computer up with absolutely every app that catches your fancy and every digital file you've ever accumulated or created since you first started computing?
Heck, I've got 256GB and I have files (including 1300 tunes, 30 vids/movies, over 1600 photos and 8000 docs /PDFs) on here - some of which I haven't touched this year - and still I have 135GB free. Stuff I use even less often (and a manual backup) I have on a very compact portable external drive.
And let's not forget Apple's own efforts to get us to do our computing storage via iCloud.
That said, whatever you do, bear in mind your computer will be 'so last year', well, next year - and its the internal guts of the thing (the thing we can't easily upgrade) that will dictate how useful it will be to you and how long Apple will support it. There is no 'future-proofing' in that regard...