Working in a home office undoubtedly makes it hard to decide when your business life starts and your personal life goes on a hiatus and vice versa. You could be cooking dinner when a call comes in from a client needing your assistance. Since your office is right there in your home, it's easy to switch modes in seconds and all day long.
No matter what goes on your personal life, living a balanced life ensures you have the energy and strength to excel in both parts of your life. Parents want to cherish their kids' childhood. Volunteers want to give as much as they can with all their heart and might. Athletes want to focus on effective training and strength.
If you prefer to be all about your career, that's your choice. Some people feel fulfilled by their careers alone. And that's mighty fine. But if they feel like they're missing something, then it could affect the career.