easy answer for me.
i dont.
probably my #1 source of stress. my wife is a closet pack rat. it doesnt help that she works in advertising so she gets free magazines for work (to see what her ads look like when they run in the issue). Sure its nice to effectively have a free subscription to SI, ESPN, Sporting News, Complex, Maxim, and QB, but along with that comes with every issue of I shizz you not... 12 different food/womens/fashion/home magazines. Its disgusting. I think I throw away ATLEAST 30+LBs of magazines each month. Sometimes it leads to arguments about "Hey I was going to read that!" B! No you werent! That issue is effin 2 months old and you havent even touched this months issue!
Easiest way to keep your area clean is to just toss everything. Dont collect or amass stuff you arent going to need.
Go buy a decent scanning device.
All financial documents (bills, statements, etc...) scan em in, save em to an external drive if you are paranoid about keeping it on your actual computer (USB thumb drive for example). Then shred the originals.
Work related paperwork? do the same thing if you can
Magazines? Read and dump. Are you really going to go back to that 6 month old issue at a later time?
The clothes? Buy a new dresser or go buy a buncha hangers and start hanging stuff up. I am guilty of this as well. Since the wife claimed the entire master closet as her own domain, All of my stuff is relegated to the guest bedroom and that closet. As such, the guest bedroom including the bed in there has become my closet (I hardly ever have guests over, and when my buddies drunkenly pass out at my house they usually just sleep on the couch downstairs). Atleast once a month I will take some time off on a lazy Saturday to just fold or hang everything. Sure it might take 45 min or so, but its worth it.
If you are still living with your parents, it may not be a viable option, but GET A MAID... seriously. BEST $80/mo I EVER SPENT. I'm not rich like Jumpmankb so I only have them come once a month instead of weekly or twice a month. I will do some general upkeep cleaning every week or other week until they come, and usually thats enough to keep my house from falling into shambles.