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In this tutorial, Simon demonstrates how to reduce the size of Excel files by saving them as binary spreadsheets. As data and complexity increase, so does the file size, which can slow down performance and make sharing difficult. By saving the file in binary format, users can significantly shrink the size of the Excel file, making it easier to manage and share. Simply navigate to the file, click on save as, enter the file name and location, and select the Excel binary workbook option before clicking save.