I have a ton of paper - a ton! I sort my cardstock by color - that's the easy part.
I have those 3 drawer units - 5 of them across on one long shelf and another 2 stacked on top of each other on a table - all just for paper. These are labeled by theme - baby, generic kids, special kids (license characters, zoo, birthday, etc.), the next unit is holidays, the next unit is seasons, then another has calendar stuff, lined and graph scrap paper, and paper with words or numbers. The last unit has all the die cut shaped paper, shaped paper. vintage/floral and stripes. The other 2 units on my table hold LO kits of my twin grandchildren, my other granddaughter and all the journaling tags, along with alpha stickers. I do store some of my paper in cropper hopper vertical files such as Basic Grey, MME, October Afternoon, Fancy Pants, WeRMemorykeepers, etc.
I also have craft clear envelopes (12 x 12) that have papers in it along with embellishments representing certain themes such as aquarium/beach, pets, heritage, and some of the classes that I started on the crops here and never finished.
Do I scrap? not much. I was on a roll earlier this year and then family matters causing alot of stress got in the way and my creativity went down the toilet.
Just think about how you think you will use your papers and go from there.