Savvy travelers say "take 1/2 the clothes, and twice the money!” And I must say I agree.
And it's fun to shop for something new when out and about. Or to splurge on a special dinner. No one really knows you wore the same outfit in Paris, and in Rome!
With so much info on-line now, there are many ways to save if you want to. Stay a few blocks off the main square. Check out vacation rentals and feel like a local. Have a big lunch and snack for dinner. Split a meal or two. Picnic in the park vs a sit-down restaurant. Local wine vs craft cocktails. You can also research hotel deals. I do recommend going straight to the hotel though and tell them the rate you found on line as they may match it. In this interconnected life now, you may be booking through Booking.com, which then sends it to Orbitz, which sends the reservation somewhere else. If there is a problem with the room or you need to cancel, they all throw their hands up and say "not my problem!" This was a very expensive lesson I learned the hard way when my room was a dump in a bad part of town.
Final word....don't sweat the small stuff. A little extra for a cab may be worth the peace of mind. A few extra bucks to a vendor isn't worth the hassle of negotiating too hard.