I have said practically everything that I wanted to say in the question. So is that possible to do or not?
Is it possible to create a separate folder for snippets and store them in that folder and still have the snippets running properly? I want to name the folder snippets
Yes, it’s possible - the Default packages do this
note that if you have any keybindings or other references to the snippets, you will need to update them to use the new path.
Generally speaking, the only packages that get deleted on an update are the default packages that ship with sublime, although you should not directly modify any of the packages installed by package control as those will get lost on package update. So what you would want to do is create a package override.
That said it may be a better idea to put your snippets in your User
package instead (unless you’re developing them for your own package) as that package is always left alone. Inserting snippets into an override on an existing package runs the risk of overriding a snippet that the package provides which might cause you problems later (in as much as your version of sublime will not do what other people’s does for the same snippet name, which is probably confusing at the least).
There’s more information on the different types of packages in the unofficial documentation on packages, which includes information on overriding parts of packages.