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I keep a very simple paper filing system.  Below is a picture of my right desk drawer.  It is one of two drawers that has paper.  It contains my working files.  The other drawer contains my reference files.

The first section contains anything I want to put into the secure Shred-It bin.  The next section contains plastic folders that I keep loose leaf papers associated with a project.  No binders and no sections.  I use 3M tape to write the project name on each folder.  I organize them by what folder I most recently used goes in the front.

The last section is a daily tickler file that I use to manage certain pieces of paper that some action needs to be taken on a given date.

Nothing fancy, but it works for me.