I like to organize my CC in folders by category. This keeps everything nice and neat. I like to use the Sims 4 Mod Manager to visually sort through my CC, so if I'm ever looking for a particular top or pair of shoes, I know exactly which folder to dig into.
Each mod is saved in its own folder for easy lookup & updating. You could collect all mod files in one big folder but that gets messy quick. Mods often come with multiple files so if you don't group all associated files in their own dedicated folders then there is a chance you might overlook one when updating.
I share more details about how I started my mods folder from fresh, automated the creation of named mod folders and built my Airtable database from scratch in my blog post here. I also share how I use the database and maintain my mods folder.
Don't want to bother building your own database and just want to get started? No worries, I already put in the work so you don't have to. Shop the Airtable template I swear by and finally bring order to your mods folder!