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Putting Clutter to Rest

The reasons for clearing clutter are many, but the big reasons are that a.) We do not have the space and b.) I want to try to teach the kids to not be as hung up on material things. When we had our large house and first moved there, we had so much space! We had this old house with three floors of living space and a mostly finished basement. We filled it with furniture, toys, books, clothes, among other things. One of the hardest things coming here was realizing that this house did not have the closet space our other house did, nor did it have the storage space. We absolutely HAD to get rid of some things, but how?