I just use an Excel spreadsheet to keep track of titles in my collection. Very basic: Artist name. Title. Label. Format (CD, LP, DL). Notes. That's it.
Typically, I'll rip new CDs when I get them. Usually 320 bit-rate MP3s.
Formerly, I uploaded all of music files to Amazon, but they stopped offering the service allowing you to upload files that you didn't buy thru them. Fortunately, the vast majority of my collection is already "out there" and remains accessible. So, as long as I'm connect to the internet, I can listen anywhere via their music player app.
I've also got all of my digital files -- both downloads (mostly from emusic.com) and music that I've ripped from CDs -- on two separate external HDs.
Since I can't upload to Amazon anymore, I recently bought a 400GB micro-SD card for my phone. After I buy a new CD, I rip it and then copy it to the card on the phone. So the new stuff isn't on the internet. But that's O.K. In fact, it's nice because I can listen regardless of whether I'm connected to the internet. Especially nice for times like camping and such. You can put a LOT of titles on a 400GB card, even if you rip at a high bit rate. And it's amazing how inexpensive storage is these days. I paid something like $60 for it.
I suppose I veered off-course a bit, and took us down a trail that the OP didn't ask about. Oh well. Hope that's O.K. ;-)