Lay out the materials you want to pack on your bed or another large, flat surface.
Eliminate any items that you don't have to have, such as large water bottles or a football that you never end up playing with while at the beach.
Downsize any items that come in a smaller size. For example, pack or purchase (ahead of time) a compact brush, take sample-sized sunscreens or sunscreens that come in non-bulky, flexible bottles. Eliminate large items like sunglass cases--since you're at the beach you're likely to wear your sunglasses all day anyway.
Fold your beach towel in half lengthwise and tightly roll it into a burrito-like shape.
Place your towel snuggly into your beach bag. One by one, add in your other beach items. Start with items that can fit easily anywhere, such as magazines or a baseball hat.
Place bulkier items like sunscreen or water bottles on the sides of the bag, between the bag and the ends of the towels.
Place light, flexible items like a compact brush, cell phone and keys, on top of everything else in your bag.