When I first started my research, I had two 3-ring binders, one for my father's family and one for my mother's family. As I gathered more documents, I found it necessary to split them. I went from two binders for my parents' families to four binders for my grandparents' families. I recently split one of those binders and another split is coming soon. I like the 3-ring binders with the clear sheet protectors. No glue so I can easily rearrange and remove items. It's also easy to just flip through the pages when I'm looking for something. The sheet protectors are acid free so they'll protect original documents from yellowing/foxing.
Some people prefer the file folders that have slots for divide up your records or, if you don't need to have your records portable, a small file cabinet will be a good start.
Still others prefer to work in what I call the "organized mess". Whatever method of organization works for you is fine. There's no right or wrong way. The CPA in me likes my papers orderly.
Please fell free to share your organization tips.