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Yes and no.
We tried it but my wife and I were at each others throats. She could never stay at or under the budget. The credit card bill would show $200 at Wal-Mart and she could never tell me what we spent it on. We drove each other nuts.
For this reason we switched plans. We both max our 401k's and ROTH IRAs. Then as an emergency fund we dollars cost average $500 a month into an equity income mutual fund. After that I could care less what she spends it on as long as we pay off the credit card at the end of each month. I'm happy because we are saving and she's happy because I'm not try to track her every trip to the store.
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