Actually I do both. I store most fabric in plastic bins by color. However, if I buy several pieces in a "line' I keep them together. My husband cut a piece of 'hardboard' (from his model railroad supplies) into pieces that are four inches by 11 inches. I fold the longest piece of fabric in half (so it is 11 inches) and wrap it on the board, fold the second piece a bit smaller and wrap it onto the board, etc. When I finish I can see all of the pieces in the collection. Then, I can use them together or I can take out specific pieces and use them for something else.