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"Upgrade" is a misleading term in this game, since tanks are matched via the matchmaking system, and it ensures that all of your enemies are either 2 tiers or less above you, below you or both. This means that upgrading to a better tank usually leads to you fighting better enemies as well. It's a usual beginner's mistake to think that getting a higher tier tank means being better in matches.
That said, my personal rule in this game is that I only grind to get to a tank that I like, rather than what I need, the latter which as far as this game goes doesn't exist. It's all personal preference, and whether you can get used enough to your tank to figure out its individual quirks and work around them to your benefit.
Basically, if you like being at Tier I, then why go up? Grind to that higher tier tank because you want to.
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