I do mine mostly by color. Makes it easier to see what I've got...I also used the foam boards so that my fabric sits up like bolts. I went to Lowe's and bought a pkg of the foam floor underlayment for $37..I got hundreds out of it as opposed to the 4-5 you get from the art foam boards at $4 each. Made a huge difference in actually seeing what I have. My FQ's are stored by color in a wooden shoe storage cabinet. Perfect. My scraps are also sorted by color...this picture of my scrap buckets were taken last year...its exploed since then...=) that means I've been sewing!! =)