If you haven't worn it in the last 12 (or so) MONTHS, it doesn't fit, it's out of style, or you don't feel good about yourself when you wear it -- get rid of it!
Store your clothes according to SEASON -- you can keep your "off-season" in a different part of the house if you run short on space.
You can organize your CLOTHING according to purpose (formal, casual), type (shirts, pants), style (short sleeve, long sleeve), and color (light to dark).
Separate out CATEGORIES of clothing -- men’s / women’s, pants / shirts -- by assigning each section to a different part of the closet or with rod divider discs.
Keep several BASKETS in your closet for laundry, dry-cleaning, and mending -- hang up nothing that isn’t currently wearable.
You can HANG just about anything from hooks or racks attached to your closet walls -- purses, belts, ties, tote bags -- even jewelry.
Store your shoes on a RACK -- either on the floor of the closet or the back of the door -- to keep them protected, aired out, and visible.
If you have a lot of FOLDING clothes, install some open shelves, bins, or a drawer system in your closet for easy access.