We all budget-- some more formally than others.

• Paper-- My personal favorite on index cards or in a notebook and always with you and available for review
• Spreadsheet-- I also use this one (MS Excel) for intermediate and long-term budgets
• Formal budgeting software program-- Another good approach, but requires time to learn the program and time to input EVERYTHING
• Your head-- Rather loose and free form, but hey, something is better than nothing
• No budget-- Not recommended

The last approach, "No budget", is a budget approach, but a haphazard one.  It can be an expensive one that leads to paying too much, bouncing checks and paying late and other fees.

A budget, or any plan for that matter, is like a map-- it helps you get where you are going . . .

Related posts:
On Planning . . .
My Envelope System
Is Your Financial House in Order?