Storage Of Photos

Ok once you get alot of pictures in your phone its hard to store them all. I mean I going through about 500 pictures. I tired to put a few pictures into a folder, but when I get on my Instinct I see all the other pictures, but not the folder with my those other pictures in it, also I can't see the pictures in the folder anymore either.. Do we have to lump all of the photos into one large folder with NO sub folders for it to show us the pictures on the phone.