I basically use the same method as fortyonenorth, but I use 3x5 index cards and have found that using a lead pencil for labeling works better than ink pens or permamarkers - won't fade and not a problem if it gets wet. When laminating leave an inch above the top of the index card and punch the holes about a half inch above the top of the index card. If its too close to the top of the index card then rain will seep into it.
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