I line budget, but pretty loosely using Mint (not daily, either).
For me, it's really just so I can get an accurate spending number and make sure that spending number is something we're comfortable with. Using Mint, we cut out some unnecessary grocery spending, meals out, and clothing purchases, for example. We also use it to plan for expenses like eventual new car purchase/repairs, medical bills, vacation, things like that, so very few things are unexpected.
I guess I don't see a ton of difference between line-item budgeting and the "pay yourself first" method, since it's the same general principle - Figure out what you're comfortable spending, then put the rest in savings. IMHO, putting "extra" earned money automatically into "play money" is not budgeting...
Like exercise, the most important thing is finding a technique that you can stick to and work for you. Ideally your friend would put all extra earnings into savings, but if she can agree to transfer some percentage into savings, hey, at least it's something. If she really wants to break the habit, the cash envelope system might be the way to go. Get rid of credit cards/debit cards, and stick to the budget. In order to spend more than budgeted, she would have to physically withdraw money. If nothing else, it might make her more mindful of her spending.