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When I was starting out I almost went down the same pathway. In the end, docker secrets are mainly useful when the same key needs to be distributed around multiple nodes.
Storing the keys locally in an env file that is only accessible to the docker user is close enough to the same thing for home use and greatly simplifies your setup.
I would suggest using a folder for each stack that contains 1 docker compose file and one env file. The env file contains passwords, the rest of the env variables are defined in the docker compose itself. Exclude the env files from your git repo (if you use this for version control) so you never check in a secret to your git repo (in practice I have one folder for compose files that is on git and my env files are stored in a different folder not in git).
I do this all via portainer, it will setup the above folder structure for you. Each stack is a compose file that portainer pulls from my self hosted gitea (on another machine). Portainer creates an env file itself when you add the env variables from the gui.
If someone gets access to your system and is able to access the env file, they already have high level access and your system is compromised regardless of if you have the secrets encrypted via swarm or not.