Folders are crucial enough to manage emails. They allow you to place emails by certain criteria. Gmail has several default folders, including the Inbox folder to save every new email. Gmail allows you to create new folders to manage your emails. A crucial thing to note before you create a new folder in Gmail.
In Gmail, folders are referred to as labels.
To create a new folder in Gmail, you can click the Create new label link on the left sidebar. If you don’t see this link, click the More link to see more links on the sidebar.

Give your label a name on the appearing dialog. If you want to create a sub-label, simply select a parent label beneath the label name field. Click the Create button.

The new folder you have just created will appear on the left sidebar.

You can then use the folder you created to manage your emails. For instance, you can create a Tasks folder to save all emails from your boss. To save an email to a folder, open the email and click the label icon on the top side and select a folder/label where you want to save the email.

You can also use a folder to set advanced email filtering. For instance, you can send every new incoming email that has the word “sale” to a Promotions folder. By doing this, Gmail will send every new incoming email directly to the Promotions folder instead of the Inbox folder.

There are many other cases where folders can come in handy to help you to manage emails Gmail.