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I keep wanting to do something like this and I start to implement it and end up always going back to my 'no folder' system.

The con for me is that it takes time to organize projects. I work almost exclusively from my context lists so having a messy projects folder is ok for me. I just use the search if I have a problem finding the project I'm looking for.

I guess the reason I want to implement folders is so I have some idea that I am satisfying larger goals with all my little projects. For me, the work to organize my projects this way is not worth the payoff. I keep goals in another program and make sure I validate those every now and then in my review.