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First trip to Iceland - March 2016, 4 or 5 nights HELP!

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A friend and I (two 30 something girls) are looking to go to Iceland for the first time next month (March 2016) - i'd love some suggestions for itinerary and places to stay/see. We are thinking of staying for 4 or 5 nights (I know this isnt a ton of time but its what we can do). We'd love to experience the hot springs (I've only heard of the Blue Lagoon and i know its priced more than other natural ones but think we want to do it just because! and it seems like doing this to/from the airport is the way to go but other suggestions welcome!) I dont think we will rent a car either. We'd also like to see the northern lights if possible - do you think it might be possible this time of the year? Should we book a tour for this? Is it possible to do any light hiking this time of the year? Just being able to see the natural landscape somewhere other than Reykjavik would be great too - I saw some postings with tours for the Golden Circle or the South Shore - how are those day tours this time of the year? Must see's in Reykjavik as well? We love museums, etc. Any relatively cheap hotel suggestions would be much appreciated as well. Thanks!!

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