Creating Folders
Folders appear in the navigation pane below your email address. Folders can contain mail items or additional folders. If a folder contains additional folders, a triangle appears just to the left of the folder name. To expand a folder and view the additional folder(s) inside, click the triangle.
To create a new folder, click the Organize tab and click New Folder:

In the Name Field, type a name for your folder. Note: To create a folder for mail items have you Inbox selected when creating a new folder, to create a new folder for Calendar items have you Calendar selected then choose new folder, etc.

If a folder has a triangle next to it, it contains sub-folders. Click the triangle to hide or show sub-folders.

Renaming Folders
If you decide to change the name of a folder; Hold down Control and Click on the folder with your mouse. Choose Rename Folder from the menu pop-up.

Your cursor will appear in the folder name. Type a new name and click Enter. Note that default folders (such as Inbox and Junk Email) cannot be renamed.
Moving Folders
To move a folder simply click and hold the folder and drag and drop it to its new location. Or you can use Control+Click, which will present you with a menu. Choose Move Folder and type the destination folder you wish to use.

Deleting Folders
To delete a folder, select it and click Delete on the Home tab.

This will move the folder and its contents to the Deleted Items folder.
Moving Messages to Folders
Moving messages to your folders is easy – just click the message and drag and drop it to the desired folder (hold down the Command key to select multiple items at once).
Alternatively, select the message(s) and click the Move button on the Home tab. Then choose a recently used folder in the list, or click the Copy to Folder command to find the folder you wish to use.