The important thing to remember in furnishing smaller living areas is produce an area that is cozy and beautiful and yet easily doubles as a very functional part of the house which can serve a multi-purpose role. Cluttering the living room is a bad idea so you need to be clever about your furniture choice and go only for those that serve at least a dual purpose. Sofa beds, futon sets, sectional couches come in mind when you want such furniture.
You may want to get new items to decorate your living room with, according to the theme you have chosen. It is always a good idea to make a list of the items you want to purchase, and you can also write down a list of the items you want to keep in the room.
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Consider the decor. Before deciding on what furniture to buy you need to decide on the decor and theme of your living room space. You may like traditional furnishings or antique furniture. Or perhaps you like the edgy contemporary look. Either way, decide on what style you like best before shopping.
Keep control of storage. If you accept that your living room will attract clutter then plan for it. Oak or pine cupboards and sideboards will give you the space to tidy up after the children have finished playing and allow the adults a tidier area to relax in when evening comes.
So whether your interior design is modern or contemporary you need to keep in mind the area available and come up with an interior design that makes the best use of materials and colors and allows the final effect to be still be one of space and lightness.