Iceland on a budget?

[bigfatnick]

In August, I plan on taking a trip to Iceland, for three nights, hurrah for easyjet.

I plan on seeing the blue lagoon, doing a golden circle tour, seeing the bridge between too continents (which might be on the tour, I've not looked into that yet.) What have I missed?

I know Iceland is expensive, but how expensive? I'm not going for a piss up, but is food/beer/public transport going to kill me? I'm staying in a hostel with mates and the trips seem not too silly, what can I expect?

Also, probably a stupid question, but if the northern lights are flowing at that time, how far out of reykjavic would I need to get to see them? Will it even get dark enough in August?

Thanks,

Nick

Edited by bigfatnick on Sunday 28th April 00:46

[bigfatnick]

Thanks for the help guys. Matt3001, very helpful. I like the sound of the 4 of us in a hire car for 2 days rather than on a bus. I'll take that on board!


Anyone else have any words of wisdom?