Currently I use the "no clipping system." It's where you take your inserts and write the date on the front and catalog the coupons and only cut the ones you need. Right now this works best for me because I have to go shopping with my kids and I can't bring the big book of coupons with me when ever I go shopping. And I can't really be spending my time looking around the store looking for clearances and other things anyway. I have to drive at least 45 minutes, so my kids are already tired of it by then. I think when the kids are in school and I can go shopping by myself, I might clip all my coupons and still catalog them so I'm not so overwhelmed by the sea of coupons. Here is a couple of videos from The Obsessive Shopper to teach you how to coupon. I'm a visual learner, so these videos and her step by step explanation were great to help me learn. Also visit her site to get the complete "System".
She also has an spreadsheet you can download for free to catalog your coupons, price list, savings tracker.
("this tracking form" for spreadsheet).
Gathering your coupons: