How much does a broadband connection cost? Typically anything between free and twenty quid a month, depending on the speed and quality, with most people opting for something at the lower end of the range.

But with “how come the bloody RPI is still four percent” mega-inflation now hitting food, fuel and mortgage costs, and starting to blow big holes through household budgets, people are starting to think twice. They’re wondering whether splashing out on broadband is something of an extravagance.

I reckon this is a false economy. Those of us that are online should be using the Internet to make savings that more than cover our broadband costs. For a good starting point check out the forums on the Money Saving Expert site. Those of you who’ve caught Martin Lewis on his Ch5 TV proggie might not have warmed to the fella, but the forums on his website are full of excellent advice, with lots of loyal visitors pointing out good deals that they’ve found, both online and out there in the real world.

Price comparison sites are always worth a visit too, and in particular should help you with things like utility bills and car insurance. Do bear in mind that they get a kickback from the companies they list, and that not all of them list all companies, although for car insurance I’ve found www.tescocompare.com to be particularly good. But it’s always best to build up your own shortlist based on the results from two or three comparison sites. It might take you 20 minutes, but if you’re going to save £100 or more that’s surely time well spent?

Next, check out the cashback sites. My current favourite is www.quidco.com, although others are available. In particular, check out the deals available on essentials such as gas, electricity, and car insurance. Use the list you got from the price comparison sites, and then factor in the cashback you’ll get from Quidco. You’ll often find that the best deal isn’t from the cheapest company, or from that offering the biggest cashback – it’s only when you combine the price and the kickback that you’ll find the bargain price. For example, I just renewed the insurance on my wife’s car – we’d received a renewal quote of £250 from Direct Line, but by using a couple of price comparison sites I managed to get a new policy from MoreThan for £190, with £65 cash back via Quidco. So £125 in all, exactly half of Direct Line’s renewal quote.

I’ve been a member of Quidco for seven months now, and have so far clocked up £435 cashback, including two lots of £60 for switching from British Gas to, erm, British Gas. Nice!

Other money saving advice includes keeping an eye on Ebay when making purchases – you’ll often find vendors selling stuff cheaply there via “Buy it now” listings, but make sure you weed out any sellers with poor feedback. Also check out Google’s product search too, as that can turn up some bargains. When buying electrical goods I’d advise you to take a look at Dixons online shop. They’re not often listed by the price comparison sites, but I’ve found them to be consistently cheaper than most other online retailers over recent weeks. Plus there’s a series of well known discount codes that you might be able to use (AW5, AW10, etc.), plus another 3% off by going via Quidco. Oh, and if you pay using an Egg card you’ll get another 2.5% cashback on top of that! Like with the car insurance, it’s these combinations that are important.

People once spoke about the Internet creating a digital divide, a society of ‘haves’ and ‘have-nots’. They were talking about information, and the empowerment that it brings, but I reckon that the ‘net is now delivering something far more basic – value. We’re getting to the point where the ‘haves’ only have because they can afford to, and they can only afford to because they have the tools and opportunities that the Internet provides. Can anyone afford to be without it?