Nowadays it's pretty much indispensable. That doesn't mean you have to overpay.

No doubt about it, the internet is here to stay and far more likely than not you need it.

Unlike many of the other money saving sections (groceries, utilities, car insurance) there just aren't nearly as many ways to save on this modern day necessity.
Without question the biggest obstacle to reasonable priced internet service is a lack of competition.

In many cases your internet service and cable provider are nearly always going to be the same company.
If you already read the cable portion in the saving section you already know where I'm going with this.
More cable competition in the area you live in equals more internet service competition.

Even without the robust competition that spells your greatest internet service savings. 
There still are a number of things you can do to lower your internet bill.
Because of this fact were going to do things a little differently here.
The first list directly below will comprise a list of what can be done if you happen to live in an area without much competition.
The second list is for those lucky enough to live in an area with at least two (or even more!) companies to choose from.
For you serious super savers out there in a competitive area you can of course use as much from the first list as well.
The worst that can happen is an even lower internet bill. You can live with that.

This list is primarily aimed at those living in less competitive areas.

* Maybe it's free anyway. 
This is a long shot for a couple of reasons. If you happen to live in a city or even a good-sized town you might not need to pay for internet to begin with. 
WI-FI is getting better all the time so if you're using a laptop or notebook anyway check to see if your getting a strong WI-FI signal,
if so, you might be able to bypass an ISP altogether.
Obviously, this won't apply if your anchored to a desktop. I mentioned something about a "long shot" didn't I? 

Two things.
 First if your living in a rural, semi-rural or a smaller town in general WI-FI is more fiction than fact. 
For now at least. 
Again by most accounts it's getting better.
 Second. This first list is comprised of options targeted toward those without the competitive advantage of multiple ISPs.
 And who's most likely living in areas without those multiple ISPs? 
Those living in a rural, semi-rural or a smaller towns in general.
 Still double check first just in case.

* Your smartphone could be all the internet you need.
 Other than the fact that it's not visually simulating if your really into online things that require the visual aspects other than the audio such as nature documentaries, gaming info or a good scary movie. So this one is definitely not for everyone, to say the least.
Still I can't help but feel it actually is for more of us than are doing it. 
If, for example you are having financial problems it's more of an easy $200+ (internet and cable) fix than a decision. 
$2500 in a year. 
Just make sure you do have unlimited data in your phone plan or you'll get a nasty phone bill.

* Bundle services.
 Find out what kind of discounts you could get if you bundle several services (internet, phone, cable). It's nearly always the first place to start.

* Buy your own equipment. 
This serves as a dual bargain when combined with the item below.
 Internet companies usually charge a $10 rental fee for the modem they provide. 
Get a better modem and install it yourself (it's super easy, three wires). 
Better yet, have the cable person install it when they arrive to hook your system up. 
Make absolutely sure your not being charged a modem rental fee. 
They somehow miss this one often.

* You can probably lower your internet speed.
 Since you now have a better modem than the one the internet company would have provided it's time to save even more money. 
These two tips go together so well because they complement each other so much.

* Negotiate with your provider.
 Even if there's no competition to speak of. 
If they think they might lose you for any reason theres always hope for some price reduction.

* Check for discounts for veterans, teachers, police, and EMP employees.

* Go over your internet/cable bill line for line for ANY add-ons you either don't need or didn't agree to. 
We already mentioned double-checking modem rental fees even after you tell them you have your own modem.
 Cable/ internet companies are notorious for tacking on things you didn't agree to.
 Make a list and CALL, don't email your concerns. 
Emails get ignored if even acknowledged. 
Phone calls not going anywhere go upwards to the managers when you DEMAND TO SPEAK TO ONE.
 Fight this one hard. 
An extra $80 a month in unwarranted charges comes out to almost $1000 A YEAR YOU DIDN'T AGREE TO. 
There aren't many points we recommend challenging to this extent but on this one you must. 
This may be the easiest $500-$1000 a year you will ever save!

* After you have removed every bogus charge its time to settle up.
Negative option billing:
"The official term for the practice of charging services not asked for is called  negative option billing."
You may never have heard the term BUT THEY HAVE. 
It's the term YOUR GOING TO USE when discussing the matter with them.
 You should total up to the penny what they charged you without your permission and seek reimbursement.
Of course they will argue the point but use the term "negative option billing" and how your sure it's a violation of the "Consumer Protections for Cable Bills"
a few more times and you stand a better chance of being reimbursed.
 If you still get nowhere you can file a complaint with the FCC if you feel it's worth it to you.
Most people just write off the matter as an annoying but typical cost of doing business with providers.
 But if you feel you were unfairly charged you probably were. 
It only takes a few minutes and you might get back hundreds of dollars.

*  Get discounts for paperless billing and auto-pay. 
Just make sure your ISPs never have direct access to your primary bank account.
If they do demand access to a bank it might be well worth it to open an account with a local branch to pay only those bills with companies that demand access to a financial institution. 
Just make sure theres just enough money, without risking bounced checks, to cover these bills.

* Summer shut down.
 If your about to embark on some lengthy endeavor vacation, an extended out-of-town work responsibility, etc. considering cancelling internet and cable altogether if your not going to be around anyway. 
Even a temporary shut-down of three months equals a 25% discount. Minus any cancellation and hook-up fees involved.

* Maybe don't bundle up. Remember when we said bundle services?
 It might be well worth it. Especially if the convenience of one less bill per month is worth it to you. 
But then again it might not be worth it. 
Shop around and shop hard. 
It might be more convenient to have internet and cable on one bill but that doesn't automatically make it less expensive.

* Know exactly what you want and what you really want to do without.
 Theres nothing harder than hitting a moving target.
 If you aren't sure what you want only two things can happen. 
Both bad.
Your overpaying for things you don't need or your settling for what you don't want.

* At least make sure you get what you pay for. This is particularly true when it comes to internet speed.
Your ISP will give you all sorts of excuses why they can't do more for you than they already do. Sometimes it's true that they're doing their part. Sometimes not. 
And not just the subject of internet speed. If your internet is freezing too often or just slower than you think its up to YOU to figure it out.
Take a good look at the cable line from the point it reaches your house to your computer wall outlet. It should only be "split" once.
If it is split over and over again your not getting power to your modem. If your completely clueless about the cable lines ask someone who can show you whats going on.
Also look for anything that just doesn't seem right and write down every one of them.
 Call your ISP with your complaints.
 Again call, don't email. 
Don't just settle for an unneeded speed upgrade, hoping things get better. 
They rarely get better.

* Refer people for discounts.
Some companies, though less so in uncompetitive areas, offer discounts for referring new customers.
Still ask because some companies will offer discounts or cash.

* Try to get more than you pay for.
 If you can't lower your bill any further than you have at least try as much as possible to get them to throw in something extra for what your paying.
 Actually most companies are far more willing to throw in a freebie than lower the price. 
Why you ask would they throw in something at no cost with less of a fight?
 Simple. 
Anything free they, the ISP give to you is something they give you a much discounted rate.
 Assuming of course its not something they own outright. 
And anything they do give you is likely deductible for them anyway.

* Auto pay discounts. 
We've talked before about giving any bank any access for any reason.
Multiple times in fact.
But if you think the savings are worth it consider opening a local bank account aside from your normal checking and saving account.
Chances are it will be a bundled cable/ISP bill hitting your second bank account. Were only talking about giving access to reputable companies and to your secondary bank account.
NEVER EVER give any company, person, place, or company your primary bank either access or information.

This (shorter) list is aimed more at those who are fortunate enough to live in competitive areas.
Simple put these are by far the largest and most important opportunities to saving on your ISP (usually cable too).

Most of the smaller and frankly less reliable saving chances have been covered in the first list.

Assuming theres two or more companies competing for your business theres now absolutely no excuse whatsoever to ever overpay.
Of course even with two or more companies there is a limit.
And thats your job. 
To always find the floor.

Of course no one loves the idea of constant bickering with different ISPs over every dime.
 No one is asking you to.
Here's what is being asked.
 You need to identify whats the average for your area and aim for at least a 25% reduction.
Much more if you're willing for a few extra uncomfortable phone calls. 
But at least aim for 25%.

* Attitude is everything. 
Loyalty not so much.
 If your really going to get the absolute most bang for your buck you have to be willing to jump ship for better (cheaper) waters.

* As soon as you get the standard "come check us out" offer that always arrives when your already with someone else get it in writing. 
They should and nearly always do. 
They (the new company after your business) know why you want it in writing. Still they usually will. It's rarely an issue.
Now take this written offer to your current provider. Tell them your pretty sure your minds made up. Because it should be made up. Nicely explain how your likely going with the other company anyway and, again politely, ask them how much better they can do for you. This is absolutely not the time to settle for a couple of freebies.
If they say their hands are tied-because in some rare cases they are-take them at their word. 
They have no reason to lie.
 If the competing companies offer is compelling enough it's time to bounce.

* Conversely once you've jumped ship be prepared for more offers either from your original company you were with or some other competitor. 
Here you need to be a little more careful.
 Most likely every offer made will be lower than the previous offers as a percentage and in absolute terms. 
It has to be.
 Theres just so far any number can go before it's free.

* Don't forget, everytime you consider a competitors offer call them and go over the first list of suggestions. 
They will, at the very least, be far more flexible in general when they know theres competition than when there isn't.

* There will probably come a point when constantly searching for the best deal becomes old.
 Never let your ISP/cable provider know. At the very least making them feel your never on board will make them more wary of price hikes.
 Once your happy enough with the service and price you can now limit your activity to asking your current provider (the one your happy enough with) to match any competing offers.
 This is the time you might consider the freebies they throw in.
 Again no company will reduce itself to free.

* This is the point where your negotiating skills are less important than you are.
 Be a customer they want. Pay your bills on time every time.
 Be polite with the customer service people. 
Try to only call when theres a legitimate issue and not for every little issue you know is really nothing. You like the provider and price your now getting.
 Let them like you too.

* Being a member of the second list makes the first list that much more plausible. 
If your not on the second list do all you can anyway.
 It's harder to save money if thats the case but not impossible by any means.
 If the second list does apply to you congratulations.
 But a better situation doesn't mean the work ends there.
 It doesn't.
 It's worth repeating that your job is to aim for at least 25%. 

Its more than possible.