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I was pretty well brought up living this way. While I'm not so hardcore as that, I definitely tend to obsessively save money (to the point of it sometimes being bad how little money I'm willing to spend), and I almost get competitive with how little I can spend at, say, the grocery store.
At the same time though, some things are worth spending the money on--a good, well made tool or clothing item though, something that you will use often and that would benefit you to be well made, not just cheap. Or, travel. It's worth it to me to spend some money to be able to see the world.
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"Good people do not need laws to tell them to act responsibly, while bad people will find a way around the laws."
--Plato
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