For Basic Luxury Level-
If anybody placed before Him a pice or two (money), Baba purchased oil or tobacco. He was fond of tobacco, for He always smoked a bidi or Chilim (an earthen pipe). Oil was used to fuelling his Dhuni ie. Sacred fire. For Food, the Basic, HE begged, as Mendicant
After getting for Basic Luxury?
Then, some persons thought that they could not see the Saints empty-handed, and they, therefore, placed some copper coins before Baba.
If a pice was placed before Him. He used to pocket it (for the above); if it was a two pice coin, it was ‘returned’ immediately.
At further Level of Income!
Then after Baba’s fame had spread far and wide, people began to flock in numbers; and Baba began to ask Dakshina/Donation from them.
For what: a) To teach the devotees the lesson of charity and to remove their attachment to money and thus to purify their minds -(Baba said, that He had to give back hundred times more of what He received. There are many instances, in which this has happened.)
b) Giving Asking Dakshina also meant like- `Deriving lessons from the book and lodging them in the heart where Baba resides’.
At Final Level –
Baba collected a lot of money by Dakshina, He would distribute the whole amount the same day, as Charity and the next morning He would become a poor Fakir as usual.
When Baba took His Mahasamadhi, after receiving thousands and thousands of Rupees as Dakshina for about ten years, He had only a few Rupees in His possession.
“Out of the amount collected as Dakshina, Baba spent very little for His own sake, and all the rest, He distributed as charity in varying proportions to various persons”.
"I draw to Me, My man from far off or even across the seven Seas to Shirdi, like a sparrow with a string fastened to its feet"-Shirdi Sai Baba, Indian Spiritual Guru-God 