It used to invade every part of my life (and yes, I too had friends and family that invaded my home -- it took them a long time to get it through their head that though I am home, I am still WORKING). It's definitely something that will take over your life if you let it, and it does take conscious effort to keep it from doing so.
Now it provides more time for me to spend with friends, family, and my hobby pursuits (yay, crafting! And then I write how-to hubs :P). I finally got to the point that I prioritized and figured out what I liked to do best, and what of that made the most money and couldn't be given to others. Then I took everything else and have been in the process of giving it away to freelancers. For all those who are against outsourcing, I'll have you know that my two new team members were the cheapest, had the most appealing proposals, and they're both in the US ;).
Now on Tuesday and Thursday I work 11:00-1:00 and 3:00-5:00. On Monday, Wednesday, and Friday I work 1:00-3:00 and 7:00-9:00 because I go work out in the mornings and my husband's work block is first when I get back so he can have a break from baby. We work together and during one person's work block, it is the other's job to keep all distractions at bay so that the one working can focus entirely on that for two hours. We each end up with four focused, productive hours a day that way. They say the average worker gets less than an hour and a half of productive time in an 8-hour day -- all I can say is that doing it this way and handing off a lot of tasks, we get all our work done, get our weekends off, and really enjoy our time with the kids or watching movies or going camping or anything else.