I think the best way of budgeting is finding what works for you. I have two spreadsheets, a bills one and one which is personally for me.
The bills one has an income tab (inc mine, DH's and CB), an expenditure tab (inc every last thing, food, mortgage, petrol, car tax etc) and then various other tabs which track the cost of our utility bills over previous months (to help forecasting) and a car account tab (which adds up the money we allocate to car insurance for the following year, petrol etc). I bank with lloyds who allow you to set up numerous online bank accounts. So I have one for all of our car related money, a savings one (which we eventually move bits into our ISA), a Christmas one, a food shopping one, one for shopping online, our joint account and my personal bank account. Anything that goes into the food account, christmas etc stays in there until it needs to be used for what it has been allocated for. We are lucky that so far we have not had to borrow from this because we have savings should we need to fall back on them.
DH gets paid on the 6th, me on the last working day of the month and the bills come out on the 1st. We both pay ALL of our salaries into our joint account and when I get paid I work out what is disposable to our bills, then move any money I can into our savings and then split what is left between DH and I, I get slightly more because I organise DD's clothes etc.
My personal spreadsheet then shows what my disposable is for that month. Underneath I list every major expenditure I can think of, e.g. parents birthday party, weddings and allocate an amount of money to it. For example:
Bank balance: £350
Wedding £40
Present for bob £10
Hair cut £30
DD shoes £10
£90
Disposable £260
Once I have done the above I then know my disposable is £260 and per week that's approx £65, so I try to spend as little of that as possible and then I only spend any significant amounts of money, e.g. stairgate, new table etc, before the next pay day so that I know that I won't be short for long. This all works most of the time and I am happy with the way it works, however the downside is having to log into my spreadsheet every time I spend anything, it's tedious, but actually it stops me spending money and I know exactly how much I have, I even budget down to lunch with a friend to work out whether it has to wait until the following month.