As long as I've been knitting and crocheting, I've been trying to come up with the perfect yarn storage solution. For me, this means three things. The yarn must be: easily accessible, out of the way, and nicely displayed. I've finally found it!
Mount the peg board to your wall.
You could also just lean it against the wall if you don't want holes in your walls. Mounting hardware comes with the pack of hooks you'll need for this project.
Using a yarn winder, wind your yarn.
Place the hooks on your peg board, where ever you want them, and push a ball of yarn on each hook!
Get creative with the placement of your hooks/yarn to make a cool display piece!