I happened across this very useful video:
What is perfect about this solution for me is that I happen to have quite a few old pallets laying around waiting to be used for household projects. This is going to be a great way to upcycle one of those pallets (I actually am somewhat surprised it didn’t occur to me before) and solve my problem with tools storage simultaneously. So this is going to free up a lot of space. All of my tools will have a home when the project is complete. This project is simple and the instructions are fast and easy to follow; you should be able to get this done in an afternoon. Watch the video, and enjoy your brand new DIY pegboard!