Because this room is a meeting place where everyone in the house goes, it can often get bogged down with “stuff.” Julie Morgenstern reduces the problem to a very basic root — so much goes on in the living room, yet many people do not assign “homes” to the clutter. If, for example, your children play in that room but all of their toys are still relegated to their bedrooms (with the expectation that they — or you — will carry these items to their room every night), it might be wiser to put a toy basket in the living room so that putting toys away will be less of a challenge. If you like to read in this room but the books, newspapers, and magazines tend to pile up on the coffee table, you could think in terms of a few baskets — one for paper products that are ready for the recycling bin and another for those publications that you're still reading.

Before going out and investing in all-new living-room furniture, try rearranging the furniture you have now and accenting or accessorizing to create a whole new look in the room. Simply by rearranging the furniture into a more functional design, and perhaps adding new curtains and lampshades, you can create an entirely new room for little or no money.

Perhaps arrange the furniture to face the window or the fireplace (if you have one), or arrange it in clusters to create “conversation centers.” This third option could be especially useful if you entertain frequently. Clusters can create a warm and inviting feeling. Also, make good use of alcoves and windows — Julie Morgenstern says that the space surrounding windows is often the most underused space in a home. Could you install bookshelves surrounding the windows, or a low bookcase behind the sofa?

A living room featuring conversation clusters.

Clarify the overall purpose and main functions of your living area, and then consider which living-room furniture pieces you currently own, and which you're interested in adding, based on your needs. For furniture, less is more, so choose pieces that will be best utilized within the room. Could you purchase a coffee table or ottoman that opens up to reveal storage? A sofa that contains a stow-away bed for guests? Especially if you live in a small space, you'll want to think in terms of furniture that can meet a variety of needs.