I have folders for action items I need to execute, folders for pending items that I need to follow up on, a folder for discussion items, and so on. Because of my zeal for folders, I'm thrilled that they exist as tools in Outlook. In this article, we'll discuss how to create and organize Outlook folders.

Unclogging your inbox
It can be disconcerting to see the inbox, which stores incoming Outlook messages, clogged up with messages you're not sure what to do with, for example, messages that are waiting for replies, messages you think you should keep around but not have to look at every day, and so on. You can use folders to clear your inbox of clutter.

Folders and archives
Outlook folders store information in an organized way. Some people feel comfortable discarding most of the email they receive. However, if you're the type of person who likes to save almost everything, folders really come in handy.

When your folders become full, you can archive the information they contain. Information in Outlook folders is stored either on your Exchange server or in your local .PST file, but the archives are stored on your local computer's hard drive, which basically keeps all the items you're storing from slowing down Outlook.

Creating and finding folders
To create a folder in Outlook, simply select New->Folder from the File menu, name the folder, and press Enter. To find folders on the Outlook desktop, go to the desktop and double-click on the Folders icon. Doing so will give you a list of all the folders you've created.

You'll notice your Deleted Items is also there. If you throw away an item and it's still in the Deleted Items folder waiting for you to delete it, you can retrieve the item and save it in a folder. To do so, just highlight the item and drag it to the folder you want to transfer it to.

Organizing folders in a useful fashion
The challenge of using folders in Outlook is the same challenge you face with any filing system: It's important to create a system that enables you to find something once you've filed it. Filing related information together and finding good headings to put it all under is the key -- don't make the headings too narrow or too broad.