Having your own domain name is a little bit like a personalised number plate for your car, except that it costs a fraction of the price. Rather than having an e-mail address like firstname_surname@hotmail.com, your e-mail address can be something like firstname@surname.com or firstname@surname.org.uk. It's a good idea to try to get your surname as a domain name, because you can then give e-mail addresses to everyone in your family for no extra cost. If you have a good family domain name, you can keep it in the family for generations.
It depends on what type of domain is available for your surname. If your surname is unusual, then you have a good chance of finding a good domain name, but if your surname is Smith or Brown, then forget it. The following are a suggestion of an order of preference:
You can register domain names with a variety of registrars, who charge annual fees from as little as USD 5 right up to USD 35 or more. You will probably get less if you pay more money, so pick the cheapest service. As a rough guide, you should pay under USD 10 (around GBP 6) per year unless you want an unusual country domain, which can cost a lot more than this.
To check what domain names are available for your surname, go to Domain Discount 24. Once you've chosen a domain name, register at one of these web sites, depending on which is the cheapest:
Godaddy.com - cheap for .com, .org, .net, .biz, .info
DomainSite - cheap for .com, .org, .net, .name
UK Servers - cheap for .co.uk, .org.uk, .me.uk
Domain Discount 24 - cheap for unusual country-specific domains
Don't be tempted by all the extra services that domain registrars try to sell you at the time of registration (e.g. e-mail hosting, privacy), as they are either unnecessary or can be bought at a later stage from third party suppliers.
Once you have registered a domain name, you will need to have your domain hosted (particularly for your e-mail), unless you are very adventurous and want to run your own servers from home. One of the best value and most reliable services for domain hosting is UK Servers. Beware of domain registrars that offer free e-mail hosting or forwarding, as free services can be unreliable (given that you can't ask for your money back). When a service is provided for free, don't expect outstanding quality or reliabilitiy. You're better off paying just a small amount rather than nothing at all.