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Default Combo Box shink and grow

I have searched for a while now for what I thought was a simple
solution to a newbie problem.
I have a combo box populated by a column that I reference as a named
list. The column has 12 items in it but I made the reference for 50
cells to cover new data inputed. I just want my drop down list to be
clean and not have 38 blank spaces in it or if an item is removed in
the middle you see a blank space.
How do I get the drop down box to shrink and grow as the data shrinks
and grows?

 
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