Obviously it's going to change depending on how much hanging vs. drawer space you have, but here's what we do for our 2 3/4 yo. girl:
Small Closet with one rod (I'm guessing 3-4 feet long):
- All shirts, dresses, overalls, tank tops, sweaters, etc. are in the closet. Basically, anything you can hang easily.
- They are arranged by color (that's how my brain works) so it's easier to pick out clothes. When she was a baby I would arrange them with the smallest clothes at the front of the color and the larger towards the back, but we don't have that issue anymore. So, from left to right I have blacks, grays, white, reds/burgundy, bright pink, pinks, oranges, yellows, greens, blues, purples/lavender, and finally brown.
Small dresser with 3 drawers:
Top drawer - Pants, shorts, skirts, undies & pull-ups. Anything that are "bottoms" and used daily.
Middle drawer - PJs, socks (in one of her old shoe boxes), tights (next to the box of socks - creating it's own section), and in the back I have seasonal items like swimsuits and winter hats in the wipes boxes that came in cases of wipes.
Bottom drawer - Sheets & blankets.
Shoes are currently located on her book shelf. We need a better plan for them however, because there are always shoes missing or all around the house (we have a girl that loves changing outfits throughout the day). Plus, I have been saving her shoes as mementos, and the bigger they get, the harder I find them to display. Also, what I would give for books to be put back on the remaining self space everyday. ;-)
Our little girl has a bunch of clothes and we don't have much storage space in her small room and this has always worked. The main thing I've noticed is that as her clothes get bigger, I have to find different ways to fold the drawer items so they still all fit. One day she'll get our old dresser that is a lot bigger. But for now, we still use the changing pad for after baths and need the small dresser.
One thing I do fairly regularly is weed out items that just don't fit anymore (or seasonal items that won't fit by the next season) and give them away to friends and relatives. This always seems to happen right around the time I'm running out of room. So I guess if there's no room for it, she doesn't need it. ;-)