Controlling my mess of a closet! I need help!

So I just went through my two closets and two dressers this morning. I separated the clothes that I no longer want to either donate or sell at a garage sale; I organized drawers and closet sections into categories; hung up what need hanging and folded what needed folded. And, you know, the fact of the matter is that my closets and drawers are still overflowing.

Now I can make excuses, like "I have work AND casual clothes" and "I have summer AND winter clothes". But the fact of the matter is that, I have too much! I want to simplify my life and certainly my clothing. Any suggestions...