Backpacking through Iceland on a tight budget — totally doable
Did Iceland on a shoestring for 19 days and it was absolutely manageable. Based in cheap guesthouses near Akureyri centre and ate mostly at local spots — hot dogs from street stalls cost almost nothing and was better than anything in a tourist restaurant.
Jökulsárlón glacier lagoon has an entry fee but worth every penny. northern lights and midnight sun was a free discovery that ended up being one of my favourite moments of the trip. Budget travellers: Iceland is worth your time and money, just avoid the tourist-priced restaurants.
Iceland