I tend to prefer to have locational chests rather than everything in one place; anywhere from one to five somewhere near the places I will need them. So one by any place I fish a lot, one to three in the cave entries, a few near my planting areas, a bunch inside the house, a couple inside the GI house, a couple beside the workbench, one in the greenhouse...
I tried with a prior farmer to do a chest-limited run (and this was 1.5 so didn't have any big chests). It was HARD, but I've found that even with my "I can just add another!" runs, the practice made me a bit more mindful of not keeping every last thing. This was the criteria:
She cannot keep seeds out of season until she has a place to plant them, like the greenhouse or GI. She cannot save more for the greenhouse or GI than she can store in the chests.
She cannot buy another fridge - or store any food/ingredients in chests overnight once the house has a kitchen. (Getting the quest mini-fridge will really matter...) if he pases out in a mine, she needs to retrieve foodstuffs left behind in chests immediately in the morning.
She can only have three chests to start: one in the house (by the workbench), one in the mine entry, and one on the beach. She can add one each in the following locations as they unlock: Skull Cavern, Greenhouse, Ginger Island Farmhouse, Volcano.
If it doesn't fit in those spaces, it should be sold (or gifted).
If she gets far enough to add Junimo chests, she's also limited to 3, one per mine, and they have to replace the mine chests entirely.
(The last proved to be an "if" as I closed that run without getting Junimo chests.)