Originally posted by Marksman Max:

Once you get Iron I'd highly suggest making a bunch of Reinforced chests. They're pretty cheap (2 Iron per chest) and each chest holds like 24 items instead of ten.

Also in the Iron Age, you can make an Obliterator (if you found the Merchant) to zap all the unnecessary ♥♥♥♥♥♥♥♥ for some free coal.

Blackmetal chests are much easier to make tho. You need iron for everything, when blackmetal is totaly usless after you make weapons you want. (you will have to kill final boss if you want a night furlings spawn in meadows)

Anyway a good way to deal with problem:
1) You just started the game:
Make as many chests as possible and trow stuff inside till you kill 1.st boss and obtain smelters.
2) Find a good location near sea (that allows you to go in all directions) and build a small storage shed. Put the chests as close as possible (2 core wood on sides- 2 chests stuck together -- put on platform and place 2 more chests).
Then mark those chests with names.

I also suggest you make a dumping chest, where you trow stuff in and go back to doing your stuff.
Workbenches, kitchen and smitty also need at least 3 small ones.

I usualy mark mine like this:
Coal: Coal near smelters, but also in storage if it gets full
Stone: All types of stone in game
Seeds: tree seeds and plant seeds
Wood: All type of wood
Metal: procesed bars and nails (and chain)
Raw metal: I only place this near a smelter
Raw food: only in kitchen usualy (maybe a chest in storage if i have to much)
Reshin: It drops to much
Graydwarf eyes and cores: Portal mats pretty much
Cooked food: finished food, i usualy leave those in kitched or in sleeping room
Bones: all types of bones
Leather: all type of animal, troll skin
Arrow mats: feathers and other items
Tar: takes a lot of space :D
Enemy heads: a spot to store those for later use
Junk: usualy stuff that cant realy be sorted or its usefull
Old gear: stuff you dont use any more
Tools: Fishing rood, knife, bait and others
Future items: space for adding new items