Lufia & the Fortress of Doom/Lorbenia

Inn - 20 Gold

Upon your arrival, walk around to the right to get to the upper plateau of the main part of the village. In the lower right corner of the village is where you can rest at the inn, for future reference. The to the left, in the middle of town is the shopping center. Behind the weapon/armor shop sign, you can find a hidden MIND POTION. In the lower left corner of the village are the equipment shops. Between them is a bookshelf which contains a MID ARROW.

To progress with the plot, head to the shopping center. Take the stairs up to the second floor and in the lower right corner, you'll find a chest which contains SWEET WATER. Climb the stairs up to the third floor. Talk to the stationary blond woman at the middle of the floor. Afterwards, return to the inn to talk to the innkeeper, but you don't have to stay there. Now, leave the inn and Aguro will rejoin you.

If you're not doing any level-grinding (which you shouldn't need to do), then you probably don't have enough money to buy all of the equipment I recommended above. Just buy the cheaper items first, for now. They sell the same equipment at the next town, where you'll be able to complete your purchases. I don't recommend buying Cloth Shoes or a Tan Shield for the Hero and Aguro, respectively, since you'll find them soon.

Our next destination is Grenoble. To get there, follow the grassy plains south, then straight west. Of the new enemies, Mini Demons can cast Flash, so you'll want to take them out quickly. Roozards give a lot of gold for defeating them, and aren't that hard to defeat either. Rat can summon other Rats to help them out, but aren't tough to handle.