I lived for thirteen years in a five bedroom house, with a huge attic and a full basement. From that I went to a flat with three generous bedrooms and a 15 x 24 living room. Now I live in a 14 x 70 singlewide. Through all of this, I have learned the importance of having a place for everything. Not only for furniture, and obviously one must limit the amount of furniture to the space one has, but also for every item in the house.
My biggest battle has been with paper -- bills, insurance papers, receipts, on and on. Unfortunately, I was not exposed to the concept of filing, not even in college. I have developed a very simple filing system, which helps me to be able to put papers away and find them again.
I read and pass on magazines that come, clipping or copying significant articles and filing them.
Because closet space is limited, when I buy a new article of clothing, I dispose of an item that has not been worn for some time. Actually, about twice a year, the entire closet gets a going through. To have a place for everything, I have to make space for everything.