This is a great way to sort your colored paper/scrapbook paper!
All you need is a cardboard "banker's box" for each color... I have one for each color pink, red, orange, yellow, green, blue, violet, black, brown and white!
You could even make your own "banker's boxes" by using empty cereal boxes cut at an angle from the top.
This way the paper is always available and easy to find. So even if you only need a small piece; you don't have to cut into a large piece because you can't find a small scrap.
If you don't have a lot of scrap paper you could minimize this concept by using a multi-section accordion folder like this...
I have mine on a shelf in my studio although you could put them in a cabinet. Enjoy!