Separate documents you are working on from those you have completed. Use your “Documents” file for documents you’re actively working on. That way you minimize the number of files you need to search through and back up.
When you complete files, move them to another location, such as a folder on your desktop, a special archive folder, a flash drive, an external hard disk drive or even a CD. About once a month, update your files, moving completed files to their new home and deleting duplicate or partial files.
— Adapted from “File Organization Tips: 9 Ideas for Managing Files and Folders,” http://www.microsoft.com.