Distinguishing capital from money is a strategy that reminds me capital has a higher purpose - to generate income or wealth and, ultimately, provide financial security and independence. By contributing funds to a retirement account or savings account designated for future investment, we do not confuse our capital for money and overcome the urge to spend that which we intend to invest.

Money

Money is what you spend. Economists define money as, simultaneously, a medium of exchange, a unit of accounting, and a store of value. 

Consider your paycheck. Assume 25% of your is automatically contributed toward your retirement account; you spend half of your paycheck on rent or your mortgage, groceries; and other expenses while you save 25% for a new car and your annual vacation. 

In this simple example 75% of your paycheck is money; think of the 25% contributed to your retirement as your capital.

Capital

Capital is reserved for investing.  Whether you save your capital to buy an income property or contribute to an index mutual fund, the funds used to generate income or wealth is defined as capital.

Money is easier to spend when you do not physically hand currency to another person in exchange for goods or services. With the diminished role of cash in our economy, as we scan our smart phones and tap our credit cards, maintaining a disciplined budget is more difficult than ever.