I like to ball my yarn when I get it. It takes up a lot less space that way. I always save the wrappers to go back for size of skeins, color, or washing instructions. I found though that sometimes I couldn't match up the label with the yarn I was working on until I came up with the idea of how to solve that problem.
I don't know why I didn't think of this before, it was so simple, just take a sample of the yarn and tape it to the label. You know what the correct color is, and the type, such as sport yarn, baby yarn, or regular weight for afghans. I make it a nice sample so I can know how it feels, some are softer than others. Such an easy way to now identify all the yarns I use.
Source: Myself
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