There are two parts of the dust collection equation: the chips and the fines. The chips make a mess and are annoying, especially from high volume machines like a planer. The fines hang in the air and kill you.
A shopvac hooked up to your tools can actually do a decent job of containing the mess (if you’re relatively tolerant of having to do some cleanup after), and it will get a lot of the fines at the source. It will not keep your garage spotless - eventually a fine layer of dust will be on EVERYTHING. For your lungs, it’s important to wear a respirator in that scenario.
It’s a doable setup if that’s what your space and budget allow. Improvements to that setup would a cyclone in front of the vac (to capture the chips and keep them from clogging the vac’s bag/filter, and a ceiling mounted air scrubber. HEPA filter in the vac is a must. In total that’s about $200-500 of expenditure.
If you have larger tools with 4” dust ports, then you need a dust collector. Note that you’ll still need a shopvac for collection from the smaller tools. A dust collector takes up space and will require its own dedicated circuit. There are ways to do it decently if on a budget (Harbor Freight + modifications).
So unless you’re planning on adding a lot of large stationary tools (cabinet saw, jointer/planer, bandsaw, drum sander), I’d look at a cyclone and better filter for the shopvac, adding an air scrubber, and having a decent respirator.