I use the same basic system as my older sister, just do it a little different. I do still use a credit card so it is not all cash. We pay our bills what we can with a credit card like cellphone, house phone, dish network, all medical. I do most of it online so it makes it easier. Also I get the benefits of getting rewards back from the card. This helps at Christmas time. I have even put my farm feed bill on at times to get more credit. Last year I had saved up enough to pay for my kid's Christmas gifts. This is only beneficial if you pay in full at the end of the month. If you are paying interest or late fees then it is not worth it.
I try to go to the bank the beginning of the week to get my cash. It is divided up right away before I leave the bank. I used regular envelopes for a while but they ripped so fast and I thought I had to find an more frugal way. I asked my sister to make me envelopes out of material. That didn't work, so I went to the Internet. I found exactly what I was looking for. I ordered one, well worth the money.