We have a monthy budget and an annual budget.
The monthly budget includes "everything" and not a dime left without a destination--including the checking account cushion of approxiamately $50. We are paid on the last day of the month--all bills are paid online on the next day for the entire month, cash withdrawal from the bank to fund our cash envelopes, and we're done for the month. Occasionally we have to "tweak" the budget throughout the month so we have a quickie budget meeting to figure it out, make the changes on our computer, and it's done.
Once you have a working budget in place, and commit to it--it is like getting a pay raise--you suddenly have more money to use for essential categoires once you write a dollar amount for clothing, or eating out, or similar things and then stick to the agreed upon amount.
A budget is all about controlling your income rather than letting it "disappear" and then you are left wondering where it all went while you live paycheck to paycheck.
We LOVE our budget!