My husband and I tend to be pretty likeminded when it comes to money and financial issues (what a blessing!), but last year we decided we needed to improve our approach to a monthly budget. We both tend towards saving, rather than spending, but Iwas sometimes feeling guilty for purchasing anything I viewed as unnecessary (including certain types of groceries--snack foods, certain name brands).
Though the system we put in place has been tweaked a couple of times, it has really been helpful in tracking each month's expenditures. We use a small plastic organizer (designed for checks/coupons) and have labeled various sections: food, gifts, misc. This way we know how much we've spent in each category for the month. I have never really enjoyed "formal" budgeting, but have found this to be helpful.
My favorite part, though, is that every month, we each get $10 of fun money to spend on whatever we want. Gift money that we receive for birthdays or holidays goes into our envelope, too, so we can save up for a bigger item--or not, as we choose. This has been really great, because now I don't feel (as) guilty when I occasionally buy craft supplies or treats, like the massage I'm getting today (I'm so excited!). My husband uses his funds to purchase fishing and hunting supplies. Good times!