How do y'all deal with encumbrance?

I'm pretty torn on how I feel about the encumbrance system. On the on hand, it's rare to have a game where the currency has substantial weight. It actually gives a purpose to Trade Goods, whereas in most games if something is only useful for its sale value, you just sell it immediately and don't think any further.

On the other hand, I frequently feel like I'm getting bogged down with inventory management rather than engaging with the parts of the game I actually want to be playing. For example, I recently completed Call To Arms and was really invested in continuing the story, but after looting the battlefield I felt like I had to spend the next hour figuring out how to retain all the value of the things I looted, without being so encumbered that I couldn't move. It's especially difficult since in my run I haven't found a single jeweler or gemcutter. If I had, then I think it would be a lot easier to keep my weight down.

All in all, I think I'm in favor of the system, but I think I need some tips from the pros about how to best keep a handle on my weight, value, and water levels. Any general advice for an encumbrance noob?