Iceland is undeniably one of the most popular countries to visit. Although the magnificent views that it offers are free, other expenses in the country might break your bank.

If you want to see its amazing northern lights, astonishing volcanoes, and breathtaking landscapes but don't want to deplete your savings, here are a few budget-friendly tips that will make your holiday in Iceland worthwhile.

Use Digital Strategies to Maximize Savings

A large part of any spending comes from the flight and hotel packages that many travelers find online.  While hotels may not always be the best option as you will see after reading the rest of this article, it is still possible to maximize savings even if you are inclined towards booking a hotel.

This is because many shopping sites online track you using cookies.  When you revisit certain websites, prices may gradually increase since the website would notice that you are looking at similar packages.  Furthermore, prices may vary depending on your location as seen through your IP address. To avoid this, you can use a private search mode such as Google Incognito Mode and further augment that with tools like a VPN to identify for locations where prices may be cheaper. 

Rent A Small Car

Renting a 4x4 to drive through the country's most famous landscapes will set you back by over $600. To save on car rental, you can rent a sedan or any other compact car, which only cost around $300.

Whether travelers choose to drive a grand car or settle for something less, they will surely enjoy the countryside that's packed with so many places to visit such as glaciers and waterfalls with names only a few people can pronounce.

Rent a Camper

You can hire a camper for a reasonable price. A budget camper from Cozy Campers is equipped with a gas stove, cookware, refrigerator, heating system, and bedding (duvet, linens, pillows). Those amenities alone would set you up for a comfortable and budget-friendly trip.

Iceland's designated campsites have a range of facilities for cooking, laundry, and personal hygiene. Campgrounds don't generally require reservations, although you need to check their opening times. With strategic financial decisions, Iceland can be well within one's reach. 

Don't Buy Bottled Water

Bottled water sold in Iceland is a trap. Potable water in the country runs free of charge. That's right, people here drink and refill from the tap. This makes it possible for every traveler to access drinkable water anywhere.

This tip will not only let you reduce plastic waste, but it will also leave more money for other beverages such as Einstok, or Icelandic beer. Just make sure to bring a tumbler.

Don't Stay In Hotels

Skipping hotels in exchange for cabins, guesthouses, or other homestays is definitely something that gives travelers a more immersive cultural experience. Reasonably priced places to spend your night in include Hunkubakkar, located between Jökulsárlón and Vik, and Vinland Guesthouse, located near Egilsstaðir.

For the cheapest deals on places to stay, you can check out Airbnb. Who knows, a farm with a cozy vacant room may be open to welcome guests.

Feeling adventurous? Be close to nature by setting up a tent or a sleeping bag and camp out under the northern lights for free in some public spaces. Designated campgrounds will cost around $14. Not too bad compared to hotel bills. Don't worry, Iceland is one of the safest places for travelers.

Don't Drink

Iceland is home to high taxes, and alcohol is not an exception to this. Unless you plan on tracking happy hour using Appy Hour app to get beer discounts, alcohol in Iceland is a nightmare for your wallet.

The best way to save up on drinking money is to not drink at all. People who don't drink in the country are most likely to enjoy their tours. Let's face it, nobody likes to hike with a raging hangover. For those who can't resist beer, they can choose to get it at duty free in order to save.

Save Up On Meals

Experiencing Icelandic cuisine should not come at a high cost. However, eating out in the country can be really expensive, so it is recommended to eat out at lunchtime, when the dish of the day is reasonably priced.

Although it is not the healthiest alternative, hotdog stalls that offer cheap food can also be found throughout the city of Reykjavik, one of the best summer destinations in Europe. People can also opt for grocery shopping for essentials, such as eggs, cereal, bread, and vegetables, and cook their own food.