A method and system for managing a file lifecycle is disclosed. The method incorporates a virtual file cabinet having virtual drawers. Files are moved from drawer to drawer throughout their lifecycle in accordance with policies associated with each drawer. The files are moved automatically and as such, a file's lifecycle is managed from file creation to file deletion in an automated fashion. By using an archiving device such as magneto optical storage media, the files are automatically moved to their final archived location in an archiving drawer once certain policies of their present drawer are met. The system is an electronic system employing the inventive method.