STEP 3 - PAPER!!!!  PAPER!!!!  PAPER!!!!
I am SHOCKED at the amount of paper that I have.  AND I feel silly hoarding and not wanting to waste any on my cards/books.  From the following pics, I have plenty to go around. :) 

The first thing I did was to group my paper.

• 8.5x11 solid
• 12x12 solid
• 12x12 patterned
• kits
• other sizes

I put them in piles on my table.

Then I took one pile at a times and organized it.  Since 90% of my paper is Stampin' Up!, I organized my solids by color family.  I did this for my 8.5x11 solid and my 12x12 solid.

The solids went on the shelves on my 12x12 cubes from Michaels.  I like to have my paper easily accesible to me and not in boxes.

The top 5 are organized by color family with my 8.5x11 paper sitting on top of my 12x12.  The third from the bottom is my 12x12 glitter papers (LOVE THEM!!!).  The second one up holds my 12x12 pattern paper.  The bottom shelf holds paper that is SU! and retired. 
Now I'm done right??? WRONG! What about the numerous pads of paper that I HAD to have?  The ones that are 40% off this week only!  (and the next week, and two weeks from now, and I can use a coupon on the weeks they aren't on sale)  BUT..... I needed them THAT week.  So what do I do with those?  Well, again, if they are not near me, I will not use them.  Or worse, forget I have them and buy them again (sound familiar?).  So I put them right next to  me, along with my odd shaped pads, kits, and albums.

YEAH!! Paper is done!!!!  Uh oh, what is that small piece of paper sticking out of that drawer????  Could it be?????  AAAAAAAAAAAAHHHHHHHHHHHHHHHH!!!  It's a SCRAP!  Where the heck are they going?!?!?!