There are 3 method’s in which you can use. Keep in mind do whatever works best for you. I of course use the binder method.
#1Binder Method: Clipping coupons and sorting in plastic baseball card/photo holders. Can sort alphabetically or by product category.
PROS: Easy to carry into a store. Makes finding a coupon for an unplanned item easy.
CONS: Time consuming, to clip/sort/clean out.

#2 is the Clipless System
Filing Whole Inserts/Clipless: Filing entire inserts according to date and type.
PROS: Easy, quick to sort. No clipping. Easy to find coupons when matching up from a list.
CONS: Must search database to find coupons on unplanned purchases. Can make finding coupons take longer. Almost impossible to take into a store.

#3 Clipping & Sorting (using an accordion filer/or box): Clip all coupons and sort in a accordion filer/box. Can sort alphabetically or by product category. When I first started coupons, I sorted using product categories and sub divided categories using envelopes.
PROS: Easy to find coupons. Easy to carry into a store. Great with a small supply.
CONS: Tedious clipping/sorting.

As you can see each one has pro’s and con’s.
Here are some catorgies to go by when using the binder method:
Air fresherns, Breads,Baby, breakfast,canned, dairy,drinks, frozen, medicine, makeup, paper, pasta, produce, snacks, toothpaste etc., washing detergent, vitimans etc.
You will need to set it up for whatever your needs are. I do not have a baby so I have no baby section in mine.