I have organized everything by generation and family. For example, I have a book for my mother's parents, one for my father's parents, one for DZ's mother's parents, one for my parents (which has subcategories for my brother and sisters), one for DZ's parents, one for DZ and me, and one for each of our children. I even have auxiliary books with categories for my aunts, uncles and cousins.
Everything goes in plastic sleeves for protection and is arranged in chronological order (as best I can).
It has been a long but oh so satisfying process...
I have much more to do (including labeling ) but at least it is better than having everything scattered about and shoved in boxes and drawers. Having everything organized like this makes it so much easier to find and then to share.
I love perusing through the photos and reading my ancestors' life histories and letters. I feel like I know those who have passed on before I was born.
So note to self and others....
Write down your life history or keep a journal, continue to take pictures, and write letters (those are precious). Document....document....document...make sure you date everything. Your descendants will certainly appreciate all that you do now.