Wife and I moved into our small home in 2005. It's a 3 bedroom, two kids, small square-footage, no spare bedroom.
So, we bought a new sofa with a hide-a-bed (paid cash for it, like most big purchases).
This was the WORST couch we've owned in 25 years of marriage. The middle seat was almost unusable, the bed, when set-up was about as comfortable as a military cot. It worked, we hosted family several times over the years and would pull it out, set it up and let the kiddos sleep on it/have pajama night etc.
We kept said horrible couch from say 2006 until two weeks ago. After several aborted attempts to select a new couch (is there ANYTHING worse than furniture shopping?) we finally bit the bullet about a month ago, took a Saturday afternoon to go to the local places (warning each salesman that we are picky and have been "shopping" for a new couch for many years...). About two weeks ago, we went and picked up the new sofa (super comfy, l shaped model with enough room for 2-3 folks to "lay-around" if desired) and it has changed how we use our living room and house. We used to sit in the dining room at the DR table, since the old sofa was so uncomfortable. Now, we spend a little more time relaxing together and "laid out" a little more.
We've experienced couches like our new model while out at motels or air-bnb's and this was one of our motivations for getting this model, we always enjoyed the L-shaped "laying around" model when out and about. We realize that this isn't something that "finally" makes us happy (happy is a mood/temporary thing) and we recognize that, eventually, we'll get used to this couch and won't be such a treat but, we waited TOO long to make this change. We've been FI for about 5 years and the cost was NEVER the issue, it was more about not having time/not wanting to spend the money since we both hold on to our savings/etc. a little "long".
So, lesson learned for us, there ARE things in your environment/life that you can take TOO far. I follower the stoic philosophy and it supports creating challenges in life/being a little uncomfortable on purpose but, in this case WE (this was a joint thing...) took it too far.
Sharing for the others here who might be taking frugality "too far" in some instances. Life is short, enjoy some of this crap. Keep it in check though.