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In this video tutorial, Simon Says explains how to reduce the size of Excel files as they become more complex and increase in size. Excel files can range from a few kilobytes to megabytes, and the large amount of data can slow them down and make them hard to share. One way to reduce the file size is by saving it as a binary spreadsheet, which can be done by navigating to file, clicking on save as, entering the file name and location, selecting the Excel binary workbook option from the save as Pane, and clicking on Save.