Christians and material wealth: giving everything away to the poor

What did Jesus mean when He said, "Go, sell all you possess and give to the poor, and you will have treasure in heaven"? I became a Christian about a year and a half ago, and for the most part I've been very happy in my new-found faith. Sure, I've had my ups and downs, but the Lord has changed my life dramatically and blessed me in many ways. But when I met a man who showed me that Bible verse, it filled me with confusion and doubt. Do I have to give up my home and live on the streets in order to follow Jesus?