Peter Walsh, author of "Downsizing Your Way to a Richer, Happier Life," says all the stuff we own falls into one of three categories.

Memory Items
If has something personal value or is a family heirloom, it shouldn't gather dust in the basement. If you value an item, you need to show it the honor and respect it deserves. Otherwise, it has no place in your home.

I might need it later
You need to shrink the quantity in this large category to "things that reasonably fit in your space and that you'll regularly use." One raincoat, yes. Three raincoats, no.

Recycling trash
Any items that are unfit for giving away and donating.


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