Use a small folder structure
Create a few folders around clear purposes, such as Work, Personal, Receipts, and Reference. A shallow structure is usually faster to navigate than many nested folders.
Search and sort before moving files
Search helps locate a known filename, while sorting can surface recent files or group similar items. Use both before adding more folders to solve a temporary navigation problem.
Reserve favorites for active files
Mark documents you use repeatedly as favorites, and use recent files for short-term work. Review favorites occasionally so the list stays useful.