I use the interior folders sparingly.

Here's how it works: I have a hanging folder labeled "home"; inside that I have a manila folders labeled for some big subcategories. Not everything goes inside a manila folder; most of it just goes loose in the hanging folder. But once I start to see a lot of stuff accumulating on a topic ("plumbing" in the "HOME" folder; "report cards" in the "SCHOOL" folder), then I give it a manila folder.

I don't make myself nuts trying to force everything into a subfolder. Only those big subtopics, or perhaps little ones that I want to put my hands on quickly ("zoo" inside the "FAMILY FUN" folder, for example)

i would never try to rely on the colors or patterns of folders to help me determine what is inside a folder. I use LABELS.

(though I do have all blue hanging folders for the finance stuff, all green hanging folders for the memory stuff, all yellow hanging folders for home/auto/co-op.

I find if you use the manilla folders inside the hanging folder it does a couple of things, one, it keeps things neater and two, it's easier to pull the folder out then thumb through the material or try to pull out the loose papers.

I agree with Brutuses, but if you are terribly cramped for space and don't mind dealing with the hanging folders, then do it that way. I have a few folders like that, like the one where I keep warranties and other tags and information on items I've purchased. The manila folders will hold your papers better though, and they don't have hook ends to catch on things.

As for colors, I think it would be just as effective to write on the front of each folder what is in it. I think I've seen the colored folders in the big box office supply places.

I just wanted to put in a good word for Smead Viewables. (I don't have any connection with the company - just like the product.) They offer a system for hanging files that includes color-coded tabs which can be read from the top, the front and the back. Being able to read from the top, especially with a bottom file drawer, is incredibly convenient. The starter kit comes with the 3-d tabs, the labels and the software.

I do use folders inside my hanging files and for those I use Avery or Avery-compatible file folder labels. If you saw my handwriting you'd know why, LOL. Avery offers a free downloadable stand-alone software or you can download a wizard for Word.

Below is a link to a pdf document from Smead on filing. Scroll down a couple of pages and you'll see the Viewables they sell. But whether you use their system or not, there is some good advice on arranging files.

Carol

Here is a link that might be useful: Smead Filing Brochure

I was actually just starting to do a big sort-and-purge of my files today when I thought about using some folders to put inside the hanging ones. I think it will come in handy to sort old tax documents by year (I don't have a lot of forms, so each year's will fit fine inside a regular manila file, and then I'll tuck all of them inside one of the expandable hanging folders I have). But it sure saved space today when I realized that I'd been saving the tax prep instruction booklets (have no idea why) and then dumped them.

Also, if you had a hanging folder labeled "AUTOS," you could have sep. manila files for "REGISTRATION DOCUMENTS," "REPAIRS" and "AUTO TAX DOCUMENTS" (I live in Virginia) and then leave the rest of the folder for auto insurance papers.

I use manilla folders inside the hanging ones. I use them as sub-folders and like to pull out the manilla folder to sort through, rather than do it out of the hanging folder.
I have all the same colour and use coloured tabs. I use coloured tabs to categorize eg, I'll have red tabs for taxation and business files, pink ones for personal files like education, medical and house stuff, then green files for our property and title deeds and land stuff. I have them arranged in the cabinet by the colours, rather than alphabetically. That way I have the most often used business records at the front to access easily and at a glance, whereas the certificates and items that are more records to keep, are at the back.

pammyfay, that's what I do w/ the AUTO folder, except I do the opposite: my insurance papers go in a manila folder, bcs we get a new contract every 6 months or something, so I want to be able to find the old one to swap it out.

Registration was does once and won't be needed again, so it goes in the outer hanging folder.