Big thing is to first know where you are spending money, and then categorize your expenses into what is a can't-do without, must have, nice to have, and frivolous buckets. You need to put about 10% of your income into a long-term retirement fund, and have (ideally) six months of living expenses in a money-market or savings account (Must have). You need to put a certain amount of money aside each month for certain necessities (housing, required food, loan payments) (can't do without (unless you're living in your parent's basement)). Most of the rest of it tends to be the nice-to-have (like cell phones, phone lines, new clothes, eating out).
I would agree that cable internet is indispensable to me for work purposes, and would be one of the last things that I would cut back on in the event of a major problem (like losing a job).
I pay about $225 for phone service, cell phone service, and satellite service, with another $50 for cable internet (total of $275). I've looked at getting rid of the home line and going strictly cell phone, but my spousal overlord unit isn't ready to do that yet, and with three teenagers in the house, I expect my telephone costs to be going up here until they move out of the house.