In small apartments, spend your budget on strategic decisions like lighting layers, furniture placement, and choosing quality paint colors. Investing in proper lighting that includes ambient, task, and accent layers transforms the look and feel. Arrange furniture to maximize flow and visual space; for instance, position a six-by-nine-foot rug to anchor seating areas with adequate space around tables. Spending on these critical elements prevents costly mistakes, elevates function, and creates warmth in your 800 square foot space more than buying lots of decor items.