Begin by picking the towel up and holding it by its top corners so that the width is at shoulder height and the towel hangs down most of the length of your body.
Divide the towel into thirds. Take one side of the towel and bring the corner to a point roughly two thirds of the way across the width of the towel. Hold this layer in place and fold the other side to the corner that you just folded. Pin the towel between your chin and chest and shake the folds so that they're evenly distributed.
To fold the towel, keep it tucked beneath your chin and use your hands to grasp it at its midpoint. Let the top part of the towel fall so that it folds over at the midpoint. Lay the towel down on a table or other flat surface and fold it in the middle again so that it forms a neat bundle. Now the towel is ready for storage.