Yes, it is best to do both. Save a percentage for retirement, but don't let time pass you by. If you really want to buy something that will make you happy in the present, then budget for it!
Don't buy a bottle of fine wine and then let it sit until it sours and becomes undrinkable.
Also, you do need to travel and enjoy life while you are young because you just can't predict the future.
So plan on doing both while young. Save and spend.
Money isn't everything. If you can live on a strict budget when you are young, you can do it when you are old too. It's a lifestyle choice.