An Organized Photo Album: Storing Digital Photos

In the days before we all had the iPhone to document daily life, the process of sorting memories was time consuming and could be expensive. Now, we all take more photos than ever but rarely print them, much less sit down with an album open on our laps and a cup of tea to walk down memory lane. How do you organize your photos so that you can find memories from a certain event without digging through dozens of old memory cards and file locations?