Having worked in IT since I left school, I naturally opt for software!
My online database can be updated any time I set up my PC - which is every day!
Having worked in I.T. since mid-1960s, I'm quite the opposite (sort of!)
I DO keep all my photos in digital format, and plan to scan all my Certs.
I have most of my data in various Word/RTF files
BUT
I don't have an online tree, and a lot of my stuff is on bits of paper (carefully filed).
the thing to remember is --
you can be
just as disorganised digitally as you can with bits of paper - it's a matter of creating a system ...
I know someone who has about 2000 files in their directory - no sub-folders
- it takes them forever to find a piece of info - they're directly to be compared to someone who keeps all his papers in a single drawer ... insurance, house deeds, receipts, recipes!