It depends on what works for you. If you are prone to spending recklessly, I would go with cash only, as it sets a limit on how much you can spend. If you don't want to see a wad of cash in your wallet, use a coupon file as a budgeting tool. Yes, it sounds crazy, but the idea is the pockets in the file keep the money separated so you know how much you have for each bill you need to pay.
Personally, I don't use a regular bank. I do all of my banking online with no plastic or checkbook. It's a great way to build my savings, as I can't access the money.