The great thing about labels is you can use them exactly like folders, but why would you want to? Labels are much more flexible and offer some distinct advantages to the antiquated notion of folders.
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1If you don't know what a manila folder is you probably don't need to be reading this anyway.
With labels you don't have to make that kind of decision. Now imagine that you have a stack of sticky notes that you will use to categorize you paper emails. You write your categories on each of three sticky notes and slap them on the one email. And since we are talking about virtual labels here, you don't have to look every email in every folder to find what you are looking for, you just search for the particular category, or label, that you are interested in. In this case, your email will show up in searches for "important" OR "financial" OR "project x."
But if you really want to, you can stick with a one-label-per-email scheme and it will work just like folders, but I don't recommend it.
The section titled "Understanding Labels" in this training video gives all the details you'll need to move into the "love 'em" column.
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