Mostly I hand write in a notebook, then type it up in Scrivener. Sometimes I put things in GoogleDocs for my out of state friends, or I export a Word Document for some of my betas, print out for another and for me to carry around for editing. So basically, I use a lot of paper.
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You do use a lot of paper. But it has good stuff on it instead of boring stuff. (Receipts. Tax junk.) :D