Abisko, Sweden
The best site to observe the northern lights on a budget is frequently regarded as Abisko. This is due to the village's unique microclimate, which increases the likelihood of seeing the dancing lights in the sky significantly compared to other Scandinavian locations.
The northern end of the 450-kilometer Kungsleden (the King's Trail), an epic trekking route over harsh terrain to the small Swedish settlement of Hemavan, is Abisko. You can travel the route (or just a portion of it, if you want) in relative comfort thanks to the basic mountain huts that dot the path every 10–20 km. You'll get a bed and a stove, but there is no electricity or running water. Even though this area has excellent hiking opportunities, Abisko is the best location in Sweden for viewing the northern lights. The region's mountains appear to push clouds away at night, aiding to increase the likelihood of seeing the aurora. Shorter stays are therefore required, which is more cost-effective. For winter enthusiasts who wish to go cross-country skiing, sledding, snowmobiling, and winter trekking under the never-ending polar night, Abisko is the ideal place. Also close is the first ice hotel in the world, where you may spend a night in "cozy" -5 degrees Celsius temperatures or simply take a tour to learn more about its history and construction.