What are project management best practices?

I created a test project in Premiere Elements 12, and saved it in a directory named "Michaels Posters".   Then I archived the project to this directory and it created a "Copied_My\ new\ video\ project1" directory with all of the media files. Then I added a video clip to the project, archived it again, and it created the "Copied_My\ new\ video\ project1_001" folder below.
My first real project will be a video highlights video of my 4 years old for 2013. This will involve editing the same project several nights a week, for maybe a couple of months. This would result in numerous "Copied_My\ new\ video\ project1_NNN" directories being created, assuming I archive the project each night.
So what is the best practices for managing a larger project like this, and avoid using a lot of disk space for the same project?
Michaels\ Posters/
├── Adobe\ Premiere\ Elements\ Preview\ Files
│   └── My\ new\ video\ project1.PRV
├── Copied_My\ new\ video\ project1
│   ├── Adobe\ Premiere\ Elements\ Preview\ Files
│   ├── Encoded\ Files
│   └── Layouts
├── Copied_My\ new\ video\ project1_001
│   └── Adobe\ Premiere\ Elements\ Preview\ Files
├── Encoded\ Files
│   └── My\ new\ video\ project1.prel
├── Layouts
└── Media\ Cache\ Files

I do work with the LAST archived project file, which contains ALL necessary resources to edit the video. But then if I add video clips to the project, these newly added clips are NOT in the archived project, so I archive it again.
The more I think about it, the more I like this workflow. One disadvantage as you said is duplicate videos and resource files. But a couple of advantages I like are:
1. You can revert to a previous version if there are any issues with a newer version, e.g., project corruption.
2. You can open the archived project ANYWHERE, and all video and resource files are available.
In terms of a larger project containing dozens of individual clips like my upcoming 2013 video highlights video of my 4 year old, I'll delete older archived projects as I go, and save maybe a couple of previous archived projects, in case I want to revert to these projects.
If you are familiar with the lack of project management iMovie, then you will know why I am elated to be using Premiere Elements 12, and being able to manage projects at all!
Thanks again for your help, I'm looking forward to starting my next video project.

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I do work with the LAST archived project file, which contains ALL necessary resources to edit the video. But then if I add video clips to the project, these newly added clips are NOT in the archived project, so I archive it again.
The more I think about it, the more I like this workflow. One disadvantage as you said is duplicate videos and resource files. But a couple of advantages I like are:
1. You can revert to a previous version if there are any issues with a newer version, e.g., project corruption.
2. You can open the archived project ANYWHERE, and all video and resource files are available.
In terms of a larger project containing dozens of individual clips like my upcoming 2013 video highlights video of my 4 year old, I'll delete older archived projects as I go, and save maybe a couple of previous archived projects, in case I want to revert to these projects.
If you are familiar with the lack of project management iMovie, then you will know why I am elated to be using Premiere Elements 12, and being able to manage projects at all!
Thanks again for your help, I'm looking forward to starting my next video project.

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>
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Yes, you are right.
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Please have a look into these articles:https://technet.microsoft.com/en-us/magazine/gg607453.aspx
https://msdn.microsoft.com/en-in/library/azure/hh531793.aspx
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Thank you for your answer.
So you are basically proposing to work with the vms in the dev folder and publish the desired version to the test folder. And the test folder is out of version control in this scenario if I understood you correctly (like simple data storage)?
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