First, just because you may live in a small home, doesn't mean you have to sacrifice style and luxury. There are plenty of things you can do and items you can purchase to make your small home look and feel larger than life, as well as trendy and sophisticated. One of the biggest problems facing small home owners is how to reduce clutter, and make your rooms more open and inviting. Probably the best thing to do, to reduce clutter, is to remove everything from your room and start over from scratch. Take out any furniture, books, magazines, pillows, etc, that you have in a room and put in a different area. Next, start to bring back the furniture in, piece by piece. Only keep what's necessary, if you have 2 chairs, but only use 1, then keep the other one somewhere else. When putting the furniture back, you should place them at angles. This will help provide the illusion that your room is larger than it is. Many interior decorators, agree that placing furniture at angles, is also a subtle way to make the room appear more stylish.
If you have lots of books and magazines that you refuse to get rid of, you could consider setting up a book shelf, and storing them in that. However, if you already are concerned with having enough space, and don't want to add a new shelf for your literature, then you could simply put them in an existing drawer or shelf you may have. For example, if you have a set of dresser drawers for your clothes, but have an empty drawer or two, you could place the magazines or books in those. Once you've reduced clutter in your rooms, you could consider adding such things as a mirror, a rug, or a nice piece of artwork on the wall. Mirrors are great items for small homes, because they reflect light and can help make the rooms appear larger. When it comes to placing rugs in a room, some people believe using many small rugs, is best for a small room, but most interior designers today, will tell you the opposite is true. It's a better idea to use one large rug in a small room, rather than several smaller ones, because having too many rugs may look cluttered, which is what you want to avoid in the first place. Finally, a nice piece of artwork to hang on the wall is a great addition to any small home. As with a rug, it's probably best to pick out one, large piece of artwork, rather than a serious of smaller ones.