correct way to upgrade?

Atm i have elgg 1.8.9 installed in folder /localmamp/elgg1.8.8 which was upgraded from version 1.8.8.
When i change the folder name to /localmamp/elgg it breaks the installation, so ive just kept it the same.
But it'd be easier if i kept it named just elgg. So now, im up to upgrading to 1.8.12, i'd prefer to change it now.
But how? Or should i just keep doing it like ive done? I understand how to backup db and mods but this still doesnt make it clear to me... Thanks in advance.

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