Go for a Light Monochromatic Look
Using the same light color for your carpeting, drapes and walls can balance a small space and de-emphasize the lines and angles. It's a cheat that will make the walls and ceiling appear to recede, adding the illusion of spaciousness. You might be worried about trading a lively, interesting vibe for the illusion of a few extra inches. In fact, the opposite is true. You can add as much interest as you want with wall hangings, throws and other accessories. A neutral palette will make it easier for you to avoid a crowded, disorganized look when you do start adding in your favorite reds, purples and greens.