Home makeover how-to: Make a big statement in a small space

The small space is the new cool space.

I turned my closet into an office, and Ralph Lauren's Mark Reynolds repurposed his Hamptons basement into a hangout space -- which he affectionately calls the "naughty room" -- filled with all the items he won't part with. Another New Yorker concealed a baby's room in an open-floored dining area by using outward-facing book shelves.

Look around and create what you need in your existing space. We all need a place to let loose and we all need a place to store our prized possessions.

"Increase the square footage of your house now without virtually any construction or additional cost," said Reynolds, senior director Creative Services at Ralph Lauren.

So, how did he do it?

"I simply took what we already had in storage below -- unused furnishings, lighting, artwork, additional household supplies, including liquor, of course, and all that family junk too precious to part with -- and organized it into a living space, added a little music room, dimmed the lights and, before we knew it, a room filled with our personal blast from the past has now become the ultimate party room," he said.

Give your space a New Year's revolution and rebel against interior convention.

Modern beds from Overstock.com

Get organized with baskets from the Container Store.

Rattan and metallic woven rugs from Calypso St. Barth

Books books books: The Strand has everything from fashion books to Hemingway.

Event designer Jung Lee has cool tabletop items that are perfect for any dinner party.

Murano glass ashtrays

An Hermes tea set

Shearling anything from Overstock.com

Glass bedside lamps from LampsPlus.com