How is everybody managing their inventories?

I've read many topics where people ask what to spend gems on and everyone says not to waste them on expanding your inventory slots. Well I'm up to 50 inventory slots and I'm still having trouble finding room to contain everything.

I have a bunch of armor pieces, some enchanted with flame and some enchanted with shock. The same with weapons, some slashing, some cleaving, and some bashing. And I have yet to get anything with frost, poison, etc. Plus I have a bunch of potions that take up at least 1/3 of my inventory.

I keep having to get rid of stuff because I keep running out of room for new things, but I never know what to get rid of because it seems like you need a different type of weapon enchanted with a different type of power for every possible situation. Same with armor.

So how is everybody managing to do this without expanding their inventory slots?