Where do I put extra libraries?

CrossRoads:
So where should I put my SdFat and Virualwire libraries?
They seem to work ok from the Core libraries location:

They will work from there, and that was where one had to put them prior to some past IDE version (12?), however the down side is when you go to download and install the next new version of the IDE it will not include any library files you have loaded, so you will have to remember that you have manually move them over to be able to use them in the new IDE version. The advantage to storing them in the arduino users sketch directory, inside a folder named libraries, is that those folder directories are not effected by uploading a new IDE version or even just reinstalling a existing IDE version.

That make sense?