Striking a savings balance

One of the most difficult issues I find as I work towards building a nestegg for retirement, is striking a balance between leisure spending now vs savings for later. I have read of people who are so focused on saving every dime that they forget to enjoy life. On the other hand we all know of people who spend money like crazy in the pursuit of instant gratification. Finding a balance somewhere in the middle is critical to being able to enjoy your present while securing the future. I often find myself reevaluting how I budget my leisure money and it is the issue that I find myself thinking about most often.