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If you want to save gold, then why are you giving it to Charon instead of spending it?
And if your Manor is maxed out, and all your equipment and runes too, then all you can do is give your gold to Charon, whereupon the gold you save with Living Safe will never be withdrawn.
THEN the Living Safe will be useless. But not until that point. As such, Living Safe is fine.
It usually is the last thing I fully upgrade.
Yes, this comes at the cost of more expensive upgrades far later. But if those particular players ever make it to that point, then the safe did the job it was meant for.
If you are experienced with platformers and can reliably make a decent income in each run, then upgrades on the safe are a waste of time. But if you are ever at a point where you almost never get enough gold in a given run to buy an upgrade, then investing in the safe after any run where you miraculously do pull in a large haul helps you to progress.
Doing a handful of suicide runs to pile gold up for an upgrade is more economical for sure. But again... it is meant for a specific crowd of players who lack skill and patience. Those people aren't likely to be willing to do runs just for gold to toss at the safe for a particular big ticket item.
If someone normally doesn't bring in big piles of gold during a run, the worst thing they could do if they do end up with a big haul is to spend it on safe upgrades that don't even increase their power at all. There is pretty much always an upgrade you can buy to spend down to almost 0 gold.
If someone was struggling, I'd suggest they'd invest in vitality and armor upgrades instead for sure. You can be very tanky in this game if you so choose, even up to NG+20.
Safe upgrades are a trap, ESPECIALLY for players that don't make it very far during runs. They are the group of people that lose the most for throwing their money away and not even getting any more powerful for it.
The math on the upgrades just doesn't check out for any use case I can think of.
This is likely connected to the specifics of the game's balance. It is exceedingly simple to clear enough rooms to get the gold needed to upgrade a stat which will enhance survivability. And such stats are always superior, since a bigger safe does not equate to bigger money.
Perhaps that could also incentivise players to not throw a character into retirement right away to choose something else and try to make the next heir work, however difficult it may be and provide an option for daring veterans to just throw all the cash into the safe and upgrading it, to see if they can really amp up the gold gain by just trying to get to the safe.
Alternatively a variation of this that would keep onto the cash in higher capacities, but would release it once a NG cycle is beaten.