Iceland on a Budget

Iceland: a place where people meet after work at the local geothermal pools rather than the local pub, a place where companies close if the weather is very nice, where night life STARTS at 1am, and a place where you can have endless adventure due to the “midnight sun”. At times you feel like you are on a completely different planet with the ever changing landscapes you encounter while in this beautiful country. 

There is so much to do and see in Iceland that I would have to stay much longer than a week to experience everything. I have highlighted the “must-dos’ and the “must-sees” of Iceland that are do-able on a budget. Now I know there is a lot more to do and see, but I feel we got a good grasp on the culture, nature, and people of Iceland in one week and without spending tons of money. 

The Blue Lagoon 

Yes it’s touristy, yes it’s cliche, but yes I’d go again. The Blue Lagoon is located near the Keflavik airport and a great place to go after you land and need to relax and unwind after traveling and dealing with airports. And don’t worry, for a small fee they will even store your larger luggage (~$5 USD per bag). If you have smaller bags, they have free lockers for you to use. There is also a bus that will pick you up from the airport and take you to the lagoon and then from the Blue Lagoon to where you are staying with an added fee on to your package when you purchase tickets. We paid extra for the transportation and it was definitely worth it. We bought the cheapest package and we still felt like we got the whole experience. Once you get your wristband, towel, have changed, and showered off, you head to the lagoon. We went during their “busy time” of day (12:00 pm) and it still didn’t feel overly crowded. The lagoon is huge with plenty of room to swim around or relax without being in other peoples’ way. I’ve never felt more calm, relaxed, and warm considering the Icelandic air was chilly (~ 50 ºF) . They give you a complimentary mud mask that you put on your face and it feels lovely! I feel like we should be using mud all the time for how great it is for your skin. They also have a swim up bar where you get one complimentary drink (alcoholic or non-alcoholic). You can also charge more drinks to your wristband which acts like a credit card. Then sit back and relax in the warm water and enjoy your day at the Blue Lagoon!

Tip: use the conditioner in the showers and try to avoid keeping your hair in the water for a long time to save your hair (I learned my lesson..I even used the conditioner, but my hair still took a few days to recover)

Cost: For package prices, click here. 

Reykjavik

As the country’s capital, it has plenty of activities to do and sights to see that don’t break the bank. 

Hallgrímskirkja 

This is the tallest church in Iceland as well as one of the tallest buildings in the country. It stands in the city’s center and the architecture is stunning. Inside the church is a magnificent organ and I bet it sounds beautiful when it plays.  You can also use the church as a focal point and if you can see and/or find the church, you can’t get lost. 

Cost: Free to go inside, small fee to go up the tower (~9.50 USD)

Harpa 

This is a beautiful concert hall and conference center located along the sea. It is made of colored glass which I learned was inspired by the basalt landscape of Iceland. The building makes me think of fish scales, but prettier. Harpa has shows and events that you can purchase tickets to if you are looking for something to do while in the city. 

Cost: Free, unless you want to purchase tickets for the events they have going on there.

The Sun Voyager: 

This steel sculpture can be seen while walking the coastal paths of Reykjavik. I thought it was supposed to resemble a viking ship, but upon further research, it is actually a dreamboat and an ode to the sun. The Sun Voyager is a great place to stop and take some photos. 

Cost: Free

The Icelandic Phallological Museum 

I honestly never thought I would learn about various penises and penile parts of different mammals in a scientific way before. But after visiting this museum, I will never look at animals the same. It is the only museum in the world to contain a collection of phallic specimens belonging to different types of mammals found in one country. There are more than 200 penises and penile parts in the collection. They even have folklore and foreign specimens. From whales to trolls; giraffes to hamsters. You name that penis and they have it. I laughed a lot, but also learned a lot. For example, did you know a Blue Whale ejaculates up to 5 gallons of sperm per session and its penis can weigh up to 1,000 pounds? I didn’t. I would definitely recommend checking out the Icelandic Phallological Museum. 

Cost: ~14 USD

Bryggjan Brugghús 

This bistro and brewery is located in Old Harbour and is the first bistro and microbrewery in Iceland. You can sit inside or outside and take in the views. Your beer goes straight to your glass from the brewery from their 12 beer pumps. For the non-beer lovers, they also have a variety of wines. And if you’re on a budget (like we are), get the flights of beer because you get to try more without spending as much money. I’m new to the beer game, but I must say I enjoyed the taste of the beers I chose! For all beer lovers our there, you should download Untappd. It’s basically Facebook for beer and you can track and rate all the different beers you’ve tried from around the world. 

Cost- Depends on what you eat and drink

Perlan 

This is a museum and observatory that has exhibitions about the “wonders of Iceland”. There is a virtual aquarium; a man made ice cave; and you get to hear and feel the power of volcanoes, geothermal energy, earthquakes. We personally didn’t pay to go in to the museum, but we did pay to go up to the observatory deck. I recommend going up to the observatory as you get a 360 degree view of Reykjavik with its surrounding sea and mountains. 

Cost – Museum + Observatory: ~38 USD//Observatory deck only- ~5 USD

Nautholsvik Geothermal Beach  

This is the most unique beach I have been to. Iceland imported golden sand, created a lagoon, a pool, steam baths, and built high seawalls to create a beach. Within the lagoon there is a hot tub. I also learned that cold water swimming is a thing and actually good for your immune system. I saw several people swimming in the open sea water for a workout and then coming in to the warm pool to warm up. The Icelanders did not seem phased by the cold air or water. I ventured in to the lagoon which is a mix of cold water from the sea and warm geothermal water so I considered that my cold water swimming for the day. Also, don’t wear jewelry in to the geothermal water! I learned the hard way and it tarnished my rings. But a quick google search saved the day and if it does happen, you can scrub your jewelry with toothpaste and your jewelry will look as good as new! 

Cost- Summer- Free//Winter- ~6 USD

Baejarins Beztu Pylsur 

We couldn’t leave Iceland without trying a Icelandic hot dog! We went to the most famous hot dog stand to test out the hot dog for ourselves. Bæjarins beztu pylsur translates to “the best hot dog in town”. And its true, we even went to another hot dog stand for a second hot dog, and Beajarins Beztu was definitely better. This stand has been open since 1937 and we also learned that former president Bill Clinton has eaten there. The hot dog comes with ketchup, sweet mustard, raw onion, fried onion (the best part in my opinion), and remolaði which is a mayonnaise-base sauce with sweet relish. If you want to order it with “the works”, in Icelandic it’s “eina með öllu”. If you ever go to Iceland, you must try a hot dog! We gave it a 4.5/5 stars.

Cost – ~4 USD for 1 hot dog

Golden Circle 

For the Golden Circle you can either A. take a guided tour or B. Rent a car. There are several different guided tour packages that you can choose from. Click here to begin your search if you are interested in a tour. Prices vary, but I don’t like being on someone else’s time when exploring, so we went with option B- rent a car. I found it more exhilarating and exciting to try and locate the destinations on our own and it gave us the freedom to stay at one place as long as we wanted. The Golden Circle consists of Þingvellir National Park (World Heritage Site and fissure), Geysir (geyser), Gullfoss (waterfall), and Kerið (volcanic crater). It is possible to see all of the locations in one day. We decided not to go to Kerið and to continue our road trip to other sites outside of the Golden Circle. If you do decide to drive there is a fee at Þingvellir National Park and Kerið. Whichever way you decide to travel the Golden Circle, you won’t regret it. It can be crowded with tourists, but the sites you get to see are unforgettable and jaw dropping. 

Cost- Free to park at Geysir and Gullfoss; small fee for Þingvellir and Kerið

If you are more interested in driving around Iceland, check out my blog about road tripping through south Iceland! – click here. 

Black Sand Beach 

(type in “Reynisfjara” in your GPS or maps app on your phone for the correct location)

This beach is unreal. Between the rock structures, the cliffs, the rolling waves, the black sand, and the caves, there is so much to marvel at. I could sit on that beach for hours and be content. Although when we went it was VERY windy so I sat in one of the caves instead. There is also a Black Beach Restaurant right along the coast if you have been exploring all day and need something to eat. Fun fact- this is a Game of Thrones filming location for all the GOT lovers out there. 

Cost- Free to park and to access the beach 

Extra Tips

• You don’t have to tip in Iceland
• Depending on the type of credit card you have, you may have to purchase a gas card before pumping gas.
• When renting a car, get full insurance coverage (loose gravel on the roads are no joke)
• Reykjavik is actually very hilly- bring your walking shoes!
• Food is expensive and if you’re budget traveling, grocery shopping is the way to go! In Iceland there is a cheap grocery called Bonus – go there. 
• Purchasing a Reykjavik city card can save you money on museums, public transit, and the swimming pools. You can purchase a 24, 48, or 72 hour card.
• You have to pay for most public restrooms (~2 USD), so go to the bathroom at your accommodation if possible!

Iceland, I will be back one day!