Small Living Room Decor Ideas on a Budget & Our Small Living Room Makeover

Our small home’s living room makeover on a budget is three years in the making. As much as I love a good HGTV style flip, this wasn’t it. This was much more real. Here’s the story of how we decorated and DIYed our small living room, as well as some of my best tips on small living room decor ideas on a budget.

I don’t say this to complain, but I often think the honest work of a renovation gets glossed over. What you can’t see in the before picture is the true state of our home. We ended up having to replace the drywall in the entire house, add in new insulation, replace the old (and dangerous) electrical and refinish the floors.

The first and biggest tip for small living room decor ideas on a budget is:

1. Start with a Clear Plan & Budget for Your Small Living Room

Before buying anything, assess your space. Measure your room and take note of natural light, outlet placement and traffic flow. I’d also recommend living in the space for a while, if possible. See how the room works for you before making any big changes. Creating a simple sketch or using free room-planning apps can help you visualize the space and avoid unnecessary purchases.

Really see how the room works for you before making any big changes. This will also allow time for you to put a budget together and save money to put towards decor and renovations, if necessary. And always, always budget a bit more money and time than you think you’ll need.

What took us the longest, personally, was the finishing details like painting, putting up new baseboards and trim (the old stuff had been chewed by previous owner’s dog), and installing our wood stove. Those things all took physical and mental energy that I had not anticipated. (If you’ve never painted an entire house of bare drywall before, be prepared for an Olympic sport. My neck hurts just thinking about it.)

2. Shop Secondhand and Thrift for your Small Living Room Decor on a Budget

Thrift stores, Facebook Marketplace, Craigslist and local yard sales are the best sources for budget-friendly furniture and decor. You can often find quality pieces for a fraction of the cost. I’ve even scored some things for free!

We tried to DIY or purchase our furniture and accessories second-hand whenever possible. When we didn’t DIY or buy used, we sometimes had to save for months until we had enough to make a purchase. Remodeling a home is extremely expensive and we often sacrificed time for money.

3. Embrace a Minimalist Aesthetic

In a small space, don’t be afraid to embrace minimalism. I know minimalism can get a bad wrap. Some folks think it’s boring, but a clutter-free room feels larger, more serene and more luxurious. Conveniently, a minimalist aesthetic is also much less expensive!

Here’s some more tips on how to make your small space seem larger than it is!

What we’ve created in our small home is worth all the literal blood, sweat and tears. We’re on our way to a completed house. And I am proud to call this little place home.

Decorating a small living room on a budget takes creativity, resourcefulness and patience. But, with a bit of planning, a bit of DIY and budget shopping, a small space can transform into a favorite spot in the home.

Have tips of your own? Share your budget decorating wins in the comments!