I also recently bought an external hard drive. I am a packrat. I admit it, but I'm not ready to give everything up. So, I am going to scan in all those old bills, class notes, etc. save them on my shiny new hard drive and off to the trash the paper will go. that should free up a lot of space where I keep all these papers.
Be a digital packrat rather than a real one...less space...youcan even store things online!