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I was also frustrated by having every action in a project show up if I flagged it, making my "due or flagged" perspective almost useless. What I do now is make good use of the State Date so I don't have to have a current project perspective to remember to update.

I put a future start date on all projects (and single actions) I'm not currently focusing on. The start date is always the following Friday at 3pm, unless there is a need to have a different start date (usually for single actions, such as a waiting for). Then I flag individual actions in a project and single actions that I want to complete that day (or use the due date if there is an actual due date).

I use Friday at 3pm because that is when I do my weekly review. So as I start my weekly review, ALL my project appear in my list and then I can choose what I need to focus on the following week and change the start date for all the other projects to the following Friday at 3pm. If I know a project doesn't need any action for several weeks, I will set the date accordingly for two Fridays away or four Fridays, etc.

I started doing this initially because I find the Review function confusing with it's "Review within the next month" and "Review within the last 3 Months" wording. I never could figure out if I was behind or ahead in my reviews. Now I always know because the project is off my active project list until the designated time and I know its time to do a review.

I only use the "On Hold" status for things in my someday/maybe list, which I review less frequently. I found that using "On Hold" for other projects put them too much out of sight and I would forget about them too easily.

The most frustrating part of this is setting the start date time. I wish there was a preference to set when projects/actions should start like there is a default time for the due date. But by selecting multiple projects or single actions, I can use the Inspector and set the date/time fairly quickly.