1. Fresh Paint
Painting can be a fast, easy and extremely cost effective way to spruce up your living room. A few gallons of paint can literally transform your room. A new color can change the mood, hide imperfections in the walls, and can make the room brighter or dimmer, depending on the theme of your living area.
Different finishes can be used to texture the walls or can even be used to simulate crown molding. Painting the ceiling tends to brighten up and make the room look cleaner.
2. New Furniture
This can be cheap or expensive, depending on what you want to buy, but, some new couches can really make the whole room feel new. If you are combining this with painting, make sure the colors match up well, as this can also make the room look great.
Even if you can't afford all new couches, a new chair or coffee table can add some flair and help you remodel in stages, which will help you save money.
3. New Flooring
Again, this can be cheap (if you use carpet) or more expensive (hard woods or tile).
Carpet is cheap and can transform your living room. But, it doesn't do much for re-sale value. But, if you like the feel and warmth of carpet, this is a really cost effective option.
Tile and hard wood type floors cost more but will give you a bigger return on investment. There are discount flooring stores where you can get great deals on wood type floors. If you can install them yourself, this becomes a really economical way to remodel.
4. Accessorize
Putting new pillows on your couch, adding new curtains or blinds, new light fixtures or even a new TV can all make your living room look fresh and new. These aren't huge changes, but, if you combine them with flooring, painting or new furniture, it can really make a difference.
This is also an improvement that can be made over time, allowing you to spread out your budget and slowly improve the look and feel of your living room.