We went with the threshold method: instead of actively managing every expense and being hyper aggressive about our budget, we set a dollar or % income savings threshold to achieve every year. For us right now, that means we need to max the 401k, the 2 retirement accounts, keep a solid 3mo liquid efund, and fund our baby's 529 to our satisfaction. If all of those goals are achieved (or are on track to be achieved), then we sort of just live our lives and focus on other big life or family goals like having kids, updating the house, or traveling.
FIRE is a great long term goal, but it doesn't lend itself well to day-to-day management as there are only so many things you can really do. We are chasing FIRE even though on a daily basis it doesn't take center stage. We set smaller, more immediate goals and achievable dreams (ex: trips) that help us enjoy the journey and give us a strong quality of life in the here and now. Sure, that money could go into savings, but I am a huge proponent of enjoying the journey and not just the outcome.