Creating folders in Outlook's email in box


New Email
I had to purchase a new computer and downloaded Microsoft Office including Outlook.
I want to create folders to put emails in but if I now create a folder in the root inbox it just sits there and not among the previously established folders below that I created. It didn't do this earlier and didn't do it on a prior version of Outlook I had.
It's almost as if there is a limit to the number of folders... currently I only have about 10.