Do you actually do every craft imaginable? Many folks get excited about a craft and buy all sorts of supplies, then find out they don’t actually have that much enthusiasm for the craft. (It’s happened to me!) If you have supplies for crafts you don’t really love, I’d recommend donating them. That will give you more room and allow the craft supplies to get into the hands of someone who will actually use and love them.
Once you’ve weeded out the craft supplies you don’t love, it’s time to sort. Think about how you think of your craft supplies. (Imagine your craft stash as a craft store–where would you look for certain types of supplies?). There’s no one right way to sort craft supplies; all that matters is what makes sense to you.
I usually suggest not purchasing storage and organizing supplies until after you’ve weeded and sorted (so you know what you need), but since you’ve already purchased yours, I’m hopeful you bought containers an shelving that will work well for you. Once you’ve sorted the supplies, use your containers to store them into the categories and subcategories. Your shelves can help you divide into broad categories as well. (For example, each shelf could be for a different craft, with different containers for subcategories within that craft.)
Once you’ve done that, don’t forget the final step: label the heck out of everything! That will help you find things and put things back where they belong.
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