Where can you reduce clutter in your life?

I think I can remove clutter in my wardrobe. I love clothes and have always felt having as many as possible is the way forward. I now feel as though my clothes just take up too much space. I may just need a bigger and better closet but I have actively begun getting rid of something when I get a new item of clothing that is similar to it.

The problem is whenever I get rid of something an event comes up that it would have been perfect for or it comes back into style and I have to pay triple what I used to for it (cough cough long denim skirts). I also try to give some clothes away but that also creates clutter because I have to collect them till I have enough to give them away and every so often I bashfully dip into the pile waiting to be taken to the thrift store or to some cousin back home.

Yes I need to declutter my wardrobe but for the love of clothes what would I wear?