There is no right or wrong way to fold ... just what suits you. Mine is going into plastic totes, since I'm hoping to move out of state before year's end. I have devised a way to fold yards (and more) in one way and half yards in a different way. And then fat quarters have their own fold and container. I can therefore see at a glance if a particular fabric is at least a yard or more. I like the way it looks, and I'm keeping the tote manufacturers in business! :)