There is no correct way, but if you want the easiest way to fold towels and have some extra space, Swingler suggests the following method: 1. Fold the towel in half lengthways. Leave a small gap of about an inch at the end. 2. Fold the towel in half again, once again leaving a small gap. 3. Now working the other way, you could either fold the towel in half, if you have a larger surface area that you are working with, or fold the towel down in thirds, and viola!