I have found the solution!
Remember the organization problem I was having a little while back. Where all my yarn was getting tangled and sitting in duffel bags. Well I had my engineer husband help me find a solution that didn't break the bank or hurt my yarn. He came up with Tupperware... which would work, but would be kinda expensive for all my yarn. Then I had a stroke of genius.
Here is step 1 of a total organization solution.
Place all yarn skeins in plastic Ziploc bags. YES! Ziploc Bags!
This really works. I put my ball of yarn in a Ziploc (I used a storage bag, 1 gallon I think). I then poked a small hole close to the zipper and pulled the end of the yarn through. It works really well when you are working on projects too. It will keep my yarn clean and the yarn pulls through the hole without snagging. When I am not using the yarn I tuck the end back through and zip it into the Ziploc, so it doesn't get tangled with any other ends, or start unraveling like balls of yarn usually do.
Buy a shelving rack to place them all on.
I haven't successfully done this step yet, but I have been searching for just the right type of storage for them. I think I have decided on clear rubbermaid drawers. That way I can separate all my yarn by color and be able to see it clearly. I keep looking for them to go on sale so I can save some money in the process!
Already my supplies are looking a lot better!
Good luck to all of you out there with the same problem!