Saving without sacrifice
If, for example, I am invited out for a meal at a restaurant, I won't turn it down to save money. Instead I will go and try to save what money I can - by ordering a cheaper meal, or not having a drink with it, etc. The result is that I get an almost identical experience - a night out at a restaurant - for less money.
I think it is possible for most people, including myself, to maintain something roughly equivalent to their current quality of life, but for significantly less money. I think this can be achieved through a combination of careful spending and a bit of creativity.
I guess it all comes down to figuring what is important to you and what is not in any given situation. Taking the restaurant example, if you are mainly going for the social aspect then does it matter whether you have the steak or the pasta? If not, then pick the cheapest.