The Paradox of Thrift
There is sometimes a very easy trap to fall into when arriving in a new place, that of trying to find the cheapest lodging possible. The idea is to of course save up so there will be more for nice meals, things to do around town, and the potential of a longer stay. And maybe also to have bragging rights ("and then I stayed at THIS hole...").
This inspiration has at times landed me in some pretty yucky places. Standable, but not anywhere I'd be excited to come back to after a day out exploring. The paradox of thrift is that while you might believe that you're saving up your money so that you'll be able to enjoy your travels longer, when you sacrifice comfort for dollars, you are actually diminishing the value of your trip. When your place of repose is not anywhere you feel like you can actually relax, that is when you start to feel exhausted and irritable, and wanting to be elsewhere. My two nights in Mysore were unfortunately spent in a place where I couldn't sleep well because of noise, and couldn't feel clean in because the bathroom was in poor maintenance. Which fueled my desire to just get out of town even though I'm sure there could have been lots if interesting things to do there. Having a firm budget of 300 in mind, I didn't consider that 200 extra might have helped me to have a way better experience of the city. Of course one cannot always be going over budget, but flexibility is important as well. Maybe paying a bit extra would cause my trip to be shorter, but it would be a higher quality time overall.
That said, I am now staying in Goa for the same amount I paid in Mysore, but instead of a dirty hole with stained walls and an uncleaned bathroom, I have shiny tiled floors, a kitchen with a fridge, a clean bathroom that doesn't make me gag, and a balcony where I can see the Arabian Sea. It's almost apartment-like.
The other thing about thrift is that in adopting an attitude of deprivation, you attract the same kind of energy and people to you. When you approach engagement with the world with a spirit of "I shouldn't spend the extra 200 rupees to make sure I'm comfortable and happy," you are training yourself, consciously or otherwise, to accept treatment as a second class citizen in the state of yourself.
Money after all, is just the currency of trade for doing what you want to be doing with your time. Thrift is meant to be means of maximizing your experience with what you have. It is not meant to simply extend your currency for its own sake. There is very little point in hoarding your tools if you are not going to be using them for their intended purpose.