Welcome to my humble abode. Eh, I mean closet!
To put things in perspective: I have a walk-in closet that's 5x5 in a small rental apartment. I am in my mid-twenties and work long-ish hours in an office, so I wear more dress shirts than the average TFSer.
I love that my closet is square-shaped; it is small but has two levels of hanging racks which help maximize storage. I live in Washington DC, which has a clear division of summer and winter so I have clothes for all four seasons.
My storage methodology: I organize by season and by clothing type but not necessarily by color, because I rarely wear things that are not black, white, or red.
I prefer hanging clothes with wooden hangers than folding them except for t-shirts. I have about 60 pairs of shoes and the in-season ones are displayed neatly in rows on the carpeted floor; the off-season shoes as well as clothes are put away in boxes and bags. To my surprise, I don't have a lot of bags, so I am able to display all of them on the built-in shelves in the closet.
My Closet, Front View:
My Closet, Side View:
The Extension:
Picture source: my own pics