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In this tutorial, Simon shows how to reduce Excel file size by saving it as a binary spreadsheet. Excel files can range from a few kilobytes to a few megabytes, becoming slow and difficult to share with complex data. Saving the file in binary format reduces its size, making it easier to share. To do this, navigate to 'File', click on 'Save As', enter a file name and location, select 'Excel binary workbook' option, and click 'Save'.