Grouping contacts by catagory

I am wondering if contacts can be broken down by groups. Not necessarily an email dsitribution list as much as for example having a “group” of contacts that might be called Personal, a second “group” called Business, a third "group called “Lions Club” and so on. Some contacts are used infrequently and I think this would be a better way to have 3 short groups versus one long group when trying to find someone. I hope this makes sense.
Thanks

Yes you can manually create Contacts in Specific Groups.

1). Go to eM Client Contacts at the bottom left.

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2). Then “right click on your account” that you want to create the group and click “create folder” as in the @live.com account below.

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3). Then “type the name of the contact group” and “click Ok” as per the below @live.com example.

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4). You will then see the new “Contacts Group appear” as in the @live.com example below.

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5). Then go to the new Contacts Group and add whatever contacts you like to that group as in the example below.

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6). Finally to access those personal contacts when you compose emails, you can either “just type a few letters of their name” in the To: line, or you can “click on To:” and “manually select that specific contact group” as in the @live.com Personal Group example below. By default the To: line is on “All Contacts”.