Ladies and gentlemen, the system I am about to discuss is TOTALLY a work in progress. I welcome thoughts and suggestions.
I used to make three files for each class every semester (I'll use 101 as an example) - 101 Spring 2012 extras and originals, 101 Spring 2012 student work and 101 Spring 2012 notes.
This semester I have changed my system. NOW I keep one folder per course that is semester-specific: 101 Spring 2012 student work and extra copies of handouts; and one folder per course that is a perennial: 101- notes, teaching copies and originals of handouts. That way I can store the student work and recycle the extra copies easily at the end of each semester while keeping easy access to the handouts and teaching copies and notes I reuse semester after semester.
BUT IS THIS THE BEST WAY? I welcome your thoughts.