Things You Will Need
Computer with Microsoft Internet Explorer
Select the "Favorites" from the Internet Explorer tool bar located near the top of the page. Go down to the "Organize Favorites" and left click the mouse or hit enter on your keyboard. Go to the "New folder" button and do the same. You can now name the folder a name that best describes the content that will be added to it. Left click the mouse or hit the enter key and the name will be stored.
Select the web page from the list of "Favorites" and left click once and hold down the mouse button and drag the Favorite into the appropriate folder.
You can easily change the order of the folders by going to Favorites/Organize Favorites and then drag the folders up or down depending where you want the folder in relation to the other folders. You can also follow the same procedure within a folder to organize the individual links by going to the folder and dragging and dropping the links in what ever order makes it easier for you to use. The folders and individual links can be organized alphabetically, frequency used or some other sorting that you like.
After you have accumulated a number of websites in your "Favorites" folder, organize them into folders of their own based on categories that are easy for you identify and use.
Tips & Warnings
You can also add a new folder as in step one in Internet Explorer versions 7 and 8 by pressing the Hot-Key combination of Ctrl+D. You then hit the "New Folder" button and then name the folder and hit the enter key. This may also work on earlier versions of Internet Explorer.