First, I'd like to thank everyone that responded to my post as it has been very helpful.
I apologize if I didn't make my first post clear enough about what I am currently using. I am an experienced. Mac user been using Max for well over 20 years. I'm using things like QuarkExpress Photoshop office, etc. as well as Parallels Desktop.
When I go under System Settings/General/ Storage I have listed a 2 TB internal hard drive. When I look at the storage usage of things like applications, mail, ICloud Drive, Photos, Music etc. It all adds up to about 500 GB. The "system data" entry, however is over one terabyte which then is using 1.5 TB of the 2 TB internal drive.
When I go to purchase my new Mac mini I have planned on upping the storage to one terabyte from the 512. My question is concerning whether or not that system data of one terabyte will also factor into the migration if I do a clean install and re-download all my apps. I am also using iCloud Drive for my documents and the music and all other iCloud Drive options. Do you think I can get away with one terabyte of storage or should I upgrade to 2 TB just like some other users have mentioned here I can't understand why my "system data" is a terabyte in size especially after I have tried cleaning it out several times i.e. empty casche, back ups, etc.
Thanks again!