The 2 AM hostel checkout that made me question everything

I used to book the absolute cheapest room no matter what, figured I'd just sleep anywhere. Then last spring in Lisbon I paid $18 a night for a place that turned out to be a converted garage with no windows and a shared bathroom down a hallway that smelled like old fish. The front desk guy at 2 AM when I couldn't sleep just shrugged and said 'you get what you pay for, but not always what you need.' Now I look for hostels with at least a 8.0 rating on Hostelworld and free breakfast, even if it costs $12 more, because that extra cash buys me actual rest and a full stomach for exploring. Anyone else hit a point where cheap stopped being worth it?