I'm not really familiar with Motown music, but I think the song is about how people keep their memories in bags/objects. The bag is sort of... personal baggage?
"Stepping out today/My bag it seems to weigh a lot"
You take things that bother you and try to put them away and not think of them, but they are still a grudge/part of you
"Pointless things just put strain on my back/I’ll pack regard for you down in my bag alone"
Then you realize you need to just let things go, and instead of just not thinking of them, you should just get rid of them completely. If nothing is weighing you down you can be free
"If a car should hit me as I cross/There’ll be no keepsakes to embarrass me again"
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