Adding a few decorative touches can completely change the character of your home, and it's a lot cheaper than you think to finish a room. Whether you've just moved in somewhere or you want to update a home you've been in for years, the same ideas can create a fresh look and a homely atmosphere.

Most modern homes have wooden floors and although these look great, they can be a little sterile. Add character with a rug; it doesn't have to be expensive. Plain colours are best if you want a natural look, so try laying a light-colored rug on a dark-wood floor. If you have a patterned carpet a rug may not be for you. Patterned rugs on plain carpets can however have a nice effect.

Remember that you can get rugs in all materials, from man-made fibers to wool to sheepskin. Choose a rug based on how it feels, because just like a carpet you're going to have to walk on it. Decide whether you want your furniture to stand on it or not, and always measure your floor space appropriately.

To complete your fireplace, try using candles to make an arrangement. They look good and are cosy when lit if you have the lights down low. Above the fireplace is the perfect spot for a big mirror, which will bounce light around the room and create a feeling of space.

If you have old and tired curtains, replace them with more modern ones. Pelmets are out and tab-tops are in. Don't even think about having nets; if you must have privacy all the time go for sheers. Long-length curtains look great, so don't be afraid to try them. Curtains can be incredibly cheap if you try an outlet store.

Instead of getting a new sofa, why not just buy a cover? You could even get two so you have a change. Cushions can also give a sofa a facelift, whether you get a few large ones or lots of small ones. Beaded cushions can be picked up from home shops and markets, and come in all price ranges.

Wall hangings are brilliant, especially if you have high ceilings, to make the room feel more cozy. They can show off your personality too and are really a matter of personal taste. Decorative wall panels are available from many outlets, some very cheaply. You could hang photographs or even your own paintings.

Finally, think about your lighting. You should always have three light sources in a room so invest in a couple of lamps. Place them in different corners of the room, so that you can have the main light off but a nice warm glow on dark nights.

You can spend lots on designer accessories, but you really don't have to. Spending a little can create a great look, and you'll have money left over to change it again when you want to. Remember that keeping things simple is the best option, but neutral doesn't have to be boring.

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