The first and greatest idea that you should have is this you should be able to phantom and think of ways by which you can change and remodel that small space of yours to work for you. This would require a lot in terms of finance. However, be it known that redesigning a small space is a capital-intensive project.

Secondly, invest and furnish your living space with those stuffs that you really need. Desist from buying stuffs that you do not really need.

Keep everything compact and small – if you are furnishing a small space, it is advisable that you should keep everything small, simple, and compact. Desist from the habit of buying big or medium size household equipments.
 
When furnishing a small living space, it is advisable that you should contact a furnishing company to produce custom made or custom fitted furniture’s for you. Apart from designing your furniture, they might also need to work and improve on your current space. For example, to create more space, your walls can be worked on and made moveable. Furthermore, your walls can also be worked on and used as a secret bookshelf or a storage place for books. 

When purchasing household equipment for a small living space, you should learn to invest your monies in purchase of household equipments that can be put to multiple uses. For instance, you can get your kids bunk beds instead of buying them separate beds.

Lastly, explore all possibilities and put every available space in your house into use.