How to Visit Iceland in January on a Budget

Smiling in front of Skógafoss Waterfall in Iceland.

In this post, I am going to share with you How to Visit Iceland in January on a Budget! When you arrive on the Nordic Island of Iceland you feel like you have left Earth and landed on another planet. That is the best way I can describe it. There is nothing else like it…An absolutely amazing destination that I encourage everyone to visit.

I spent five days on the Nordic Island in January with some friends. We did as much exploring as possible on a budget. We had the most amazing time…None of us had ever seen the uniqueness and beauty Iceland showed us.

Are you interested in visiting in the month of January? Let me tell you everything you want to know before you go and how to book/experience this trip on a budget!

Let’s get into it-

How to Visit Iceland in January on a Budget:

What it’s like in January?:

January is the month Iceland usually gets the most snow out of the year. Weather can be very unpredictable and cold so be sure to bundle up!

January is one of the months with the highest chances to see the Northern Lights.

During this time of the year you will have four and a half hours of daylight. The sun rises at 11am and sets at about 4pm.

Smiling with views of the mountains in the background in Iceland.

Plan before you go:

Plan as much of your trip out before you go to save money and time once you are in Iceland!

Activities: find some activities you definitely want to do and get them on the books! Whether you just need to buy a ticket, book a tour, etc.- do it before you go to save time and money.
Flight: Flights to Iceland in January are generally pretty inexpensive compared to traveling there other times of the year. Book ahead and you will save a lot.
Hostel: Book your hostel asap! You want to be sure you get a room for your entire stay.

Getting there:

Flights to Iceland from the East coast are nice since there isn’t anywhere to stop in between which means no layovers! We flew out of Boston Logan on a direct flight, it was only a little over five hours.

Flights are generally pretty affordable to Iceland, especially in January.

Smiling for a picture in front of a yellow building in Reykjavík.

Transportation:

Depending on how much money you want to spend, you can either get around by city transportation and tour buses. Or you can rent your own car and do all the driving.

We got around by walking while in the city, the public transportation and coach buses our entire time in Iceland.

Check out Fly Bus for all your transportation needs. You can book excursion tours with them as well as rides to and from the airport. The buses are clean and on time.

If you want more of your own freedom, rent a car!

Accommodations:

Kex Hostel Reykjavík: An awesome hostel in a great location! Kex is clean, affordable, offers food and drink and is right in downtown Reykjavík. We walked everywhere downtown from this hostel.

There was three of us, we had one stranger we shared a room with. We ended up becoming friends with him and all went out together a couple nights. In the bedrooms there are lockers to keep your luggage locked up so you don’t have to worry if you share your room with someone you don’t know.

Kex also has a communal kitchen that we used a lot. Bring dry meals and cook in the kitchen to save some money.

We liked this hostel for the food and drink options, they have a great bar/restaurant area and the staff are friendly and helpful with any questions.

Four person bedroom at Kex Hostel in Reykjavík.

Things to do:

There is so much to do in Iceland! This is what we did-

Blue Lagoon:

The Blue Lagoon is a geothermal spa in Southwestern Iceland.

We had a lot of fun hanging out in this warm, relaxing geothermal lagoon. Book your ticket ahead of time. The basic ticket cost $58 USD. This gets you entrance to the lagoon, a silica mud mask, use of towel and one drink.

Just bring a bathing suit! With your ticket you’ll get a locker to put all your belongings and you will be able to rinse off in the showers afterwards.

Relaxing in the Blue Lagoon in Iceland with silica mud masks on.

Explore Downtown Reykjavík:

You can find museums, shops and restaurants in Iceland’s capital and largest city, Reykjavík. This beautiful city is located on the coast. You will see cool street art and colorful buildings. There is a lot of history in the city.

Explore unique museums like the Icelandic Phallological Museum, it houses the world’s largest display of penises and penile parts. Something funny to do while exploring the city that is inexpensive.

Browse the shops downtown. You can find beautiful clothes, art, jewelry and keepsakes in the stores in Reykjavík.

My favorite shop we visited was Fotografi! You will find the coolest old film cameras and beautiful prints of shots from around the Island.

Wall of film cameras in a small shop in Reykjavík.

Hallgrimskirkja:

Hallgrimskirkja is a Lutheran parish church in Reykjavík, Iceland.

Located at: Hallgrímstorg 1, 101 Reykjavík, Iceland

Beautiful and unique architecture. A staple in Reykjavík. Be sure to check it out while downtown.

Black Sand Beach Reynisfjara:

Head to the seafront Village of Vik to see one of the coolest most unique beaches ever, Reynisfjara.

The cliffs alongside the beach, the black sand and extremely strong, roaring ocean.

Don’t get too close to the ocean’s edge, this beach is known for powerful waves that come in extra high and strong, taking peoples feet out from under them. Just stay a safe distance and you will be fine.

Be sure to check out this iconic beach during your time here!

Sólheimajökull glacier:

Sólheimajökull glacier is only two hours from Reykjavík, it is a glacial tongue and part of the mighty Myrdalsjokull Glacier.

You will see tones of bright blue to deep blues and rugged scenery. The glacier is massive.

There are hiking and climbing tours that can take you right up on the glacier.

Smiling in front of the Sólheimajökull glacier.

Northern lights:

You have high chances of seeing the northern lights while visiting in January. Keep your fingers crossed you have clear nights during your time in Iceland!

If you book an excursion to go see the Northern Lights and they cancel because of weather you can get your money back.

Skógafoss waterfall:

One of Iceland’s largest waterfalls.

The waterfall is in the south of Iceland and is at the cliffs of where the former coastline once was.

An amazing sight to see in person.

The Golden Circle:

The Golden Circle is a 190-mile route of Iceland’s three most popular natural attractions.

Geysir (stop on the Golden Circle):

You can find one of Iceland’s greatest natural attractions, The Great Geysir in southwest Iceland. Geysir erupts every ten minutes and reaches up to 98 feet.

There is a lot of interesting history on Geysir, something you have to see with your own eyes while in Iceland.

Gullfoss Waterfall (stop on the Golden Circle):

Gullfoss is a waterfall located in the canyon of the Hvítá river in southwest Iceland.

One of Iceland’s most iconic waterfalls.

Þingvellir (Thingvellir) National Park (stop on the Golden Circle):

Known for its unusual tectonic and volcanic environment in a rift valley.

The continental drift between the North American and Eurasian Plates can be clearly seen in the cracks or faults.

Spend a night on the town in Reykjavík:

Icelanders know how to have a good time! Be sure to experience downtown at least one night while in Iceland.

There is something for everyone. My favorite bar we went to was Dillion Whisky Bar. While walking the streets we heard rock n roll music coming from upstairs of a building we were passing. One of the best decisions we made while in Iceland was to go up there. We had a night we will never forget.

Be sure to check it out while in Iceland, especially if they have live music.

Rock band at Dillion Whisky Bar in Reykjavík.

How to save money traveling in Iceland:

Eating out in Iceland can get a little expensive.

Buy things like granola bars, dry fruit, almonds, mac n cheese, and other dry food/snacks at home. Pack enough to last you at least one meal a day for each day during your trip.

This way you have snacks to hold you over while you are out exploring that you don’t have to buy at the stopping points. Doing this is a great way to save a lot of money.

Tips to know before you go:

People in Iceland are nice, as three young women traveling together we never felt threatened.
Be aware of how much daylight you have before you book excursions.
Bring a good camera!! The sights you are going to see are unreal, you will want to capture them.
If you decide to go the tour bus route (which we did) don’t stress. You will have a great experience and you don’t have to worry about driving! The buses are often only half full which leaves plenty of room for people to spread out.
The tour buses often pick you up and drop you off at your hotel/hostel, just be ready outside when they tell you.
Dress warm!! The majority of the excursions you want to do in Iceland are outside. Dressing extra warm makes the experience much more enjoyable.
Download a currency converter app on your phone. In Iceland they have the króna. It’s very different from USD, I would check on my app so I had an idea of what I was spending.
Everyone speaks English, we never had trouble communicating with anyone.
You can get wifi at most places. We never paid for an international phone plan just used wifi.
Be sure to try Bæjarins Beztu Pylsur (a famous hot dog stand in Reykjavík).

Bæjarins Beztu Pylsur hot dog stand in Reykjavík.

Smiling for a picture with mountains in the background in Iceland.

Exploring Iceland is truly an amazing experience you will never forget. After visiting once, I bet you will want to go back and see even more of the beautiful Nordic Island.

I hope this post, How to Visit Iceland in January on a Budget has been helpful for you. If you have any questions about traveling to Iceland in January and/or questions about how to do so on a budget please ask in the comments below!

Check out my Packing List for Iceland in January next!

Thanks for being here, safe travels, have a blast on this amazing experience you are going to have in Iceland!

How to Visit Iceland in January on a Budget