Do you need to rent a car? They have a great bus network with all kinds of passes to make it cheaper if you're using the bus network a lot. Using buses will probably be cheaper than renting a car.
There is very good tourist information in Reykjavik, I went to the office here: https://www.whatson.is/ and if you want to see things more cheaply they should be able to advise you well if you tell them what kinds of things you want to see.
Also, I've not stayed outside of Reykjavik (only been on some excursions), but I suspect that by simply taking more time outside of Reykjavik you will save money. about 17 hours ago
If you drink alcohol, definitely stock up on your full allotment at Keflavik airport before continuing on. It's significantly cheaper than at the liquor stores. If you plan on drinking in Reykjavik bars make sure to take advantage of each establishment's happy hours. Drinks will be up to half price compared to normal hours. There's a happy hour app available as well as a free weekly newspaper (in English) that lists all the happy hours in town along with entertainment listings etc about 14 hours agoAnswered by Keith via WorldNomads.com
There is no cheap way to see Iceland. If you go, plan to spend a lot of money. I just got back from Iceland, did the Golden Circle & then the Ring Toad. Very nice trip but don't bother going if money is a concern. about 10 hours agoAnswered by Al via WorldNomads.com
Lonely Planet Iceland is your passport to the most relevant, up-to-date advice on what to see and skip, and what hidden discoveries await you.
Bónus is probably the best known budget grocery store.
Stop by Tourist Information Centre for inquiries . about 7 hours agoAnswered by Joseph via WorldNomads.com
You can bring groceries into Iceland. They have only have a few restrictions and lax customs compared to those used to travelling to less isolated places. We had a list of everything we had with us. They never looked at it.
We also only drank during Happy Hour. Some beer and some wines are half price but most things are not even during Happy Hour. about 7 hours ago
Not an inexpensive location. Car rentals are almost essential and they run much higher than the rest of europe. Petrol or diesel fuel are expensive......as you might expect on an island with no oil resources. Restaurants are $$$$ for the most part unless you are willing to eat lots of hotdogs that are available at every fuel station. about 6 hours ago