Step 2: Use the Hangers
Coil up your cord using your favorite method (hmm... maybe another instructable?). I like to plug the ends of a single cord together for some reason. Maybe my dad does it that way, maybe granddad?
Once you're all coiled up, pass the hanger through the coil. Then, pass one end of the hanger through the other end. Hang it up by the end you just passed through the other end.
Another reason this is nice is that you can hang a bunch of cords off of a single 16d nail.
You're done. Now when you need an extension cord, pull it off the nail, undo the hanger, plug stuff in and make noise!
This method also works well for ropes, hoses and other long skinny coiled things.