Cash Only Budget

My husband and I have been using the cash only budget system for a few years.
We were motivated by Dave Ramsey and his Financial Peace seminar.
Our credit card debt was also a real motivating factor.
When we started the cash only system, I also began an effort to use coupons.
I started researching ways to save money in all areas of our lives.
I checked out thrifty ideas from the internet and even made my own laundry soap.
These things have all become a habit now - a way of life.
The cash only system was a real eye opener for us. The most amazing thing to me was how painful it was to hand over my hard earned cash.
Using a credit card was so much easier. It didn't hurt at all!
But when I started the cash only system, I noticed that I was thinking more about what I purchased. Did I really need it? Or was it something that I just wanted?
Actually looking into my cash envelopes and seeing the money slowly (or in some cases quickly) disappearing every two weeks had a real impact on me. I could SEE the money being spent.
There have been some set backs along the way but through it all we have maintained a sincere effort to use cash in every situation possible.
I am curious to hear about others who are using this system - What is working for you? What are the problems that you have come up against? Any suggestions for others?