Free Language Lessons
The best possible place to learn a language is in the country where the language is spoken. If you are already in Italy, or are planning to go there shortly, you will be in the best place to learn the language for free. While there are many language courses available, if you do not have the funds to pay for a course, or would simply prefer not to spend money on learning Italian, there are plenty of methods which will help you to learn the language without spending money.
Find your resources. Anything in Italian can be a resource for you. Look for old newspapers, books in Italian, anything in Italian you can read. Find grammar books if you can--ask friends who have been learning Italian if you can borrow one or put a free ad up. Do anything you can to collect important language learning resources--the most difficult thing will be finding free grammar material or dictionaries.
Work from the bottom up--start with your most basic material. This will be the grammar material. Work through this material as thoroughly as possible, as this is the material that has most focus on helping you improve your language skills. If you have access to the Internet, you be able to find a vast array of exercises and vocabulary there that will be extremely helpful. Use resources that are specifically aimed at learning a language.
Read the Italian language material you have collected, such as books and newspapers. If you do not understand, from what you have already studied, you should be able to make some suppositions as to the meaning of the text. Reading in Italian will increase your vocabulary familiarity, and the next time you meet a word, you will already be familiar with it.
Watch television and listen to the radio in Italian. Watching programs with English or Italian subtitles is very helpful as it helps you to relate the sound of the spoken word with either its Italian written form or its translation in English. Be cautious with subtitles, as occasionally subtitlers have to make relatively drastic cuts to the subtitles due to time/frame constraints. Look up any words you do not know in your dictionary or on the Internet.
Practice speaking with a native. You have to pay for one-on-one language tutoring, so as a form of payment, offer your English. You can often find language exchange offers stuck on noticeboards, or make your own notice and put it up where there are lots of other notices, such as in university faculties or cafes.