Some productivity experts suggest that you shouldn’t use hanging files because they take longer to just whip out a new folder for something. They suggest using regular plan folders, so you can grab one and make a new folder when ever it is needed.
This makes sense, but I think I’ve reached the best compromise with my hybrid approach.I use hanging folders for major categories and then put regular folders in for subcategories. For example, I might have “Education” as a hanging folder and then individual normal folders for each year or each class, depending on how I’m organizing things. I have a hanging folder for “Taxes” and then a regular folder for 2006, 2007, and 2008.
By using this hybrid approach I can easily add another folder by grabbing one, writing a topic on it and sliding it into the most closely related hanging folder. If there is no related hanging folder, I can grab a hanging folder and use it with out a label until I organize my files again. The normal folder sticks up enough that I can see what the contents are.