There are three types of memory long term, short term, and skill memory.
Long term memory can hold a infinite amount of memory. It is located In the hippocampus and activates when you want to memorize something for a long time.
Short term memory can remember seven things at a time and when you want to keep something it goes to long term memory.
Skill memory is in the cerebellum and it lets you do something you've already learned to do like tying a shoe.