5 ways to add budget luxury to your home (© Sheltered Images/SuperStock)

© Sheltered Images/SuperStock

In most areas of the country, home prices are still in a downward spiral. This means that instead of moving to a bigger or fancier home, most people are choosing to stay put. The advantage to this is that they don't risk losing money by selling their homes in a down real-estate market. (Bing: What's the median home price in your area?)

The downside? Well, it means they often have to put off their dreams of having a bigger or fancier home. Many people are maneuvering around this by upgrading or renovating their home. After all, if you're going to be there awhile, you might as well turn your home into your castle. Renovations can be extremely costly. Fortunately, there are easy ways to add touches of luxury to your home without breaking the bank.

1. Create dedicated spaces
Luxury homes have dedicated spaces for TV watching, crafting and working out. Although you might not have space to give an entire room over to one purpose, you can still give your home a luxurious feel by creating small, dedicated spaces within a larger room.

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For instance, instead of having your weights, jump rope and yoga mat scattered around the house, why not create a dedicated exercise space in the spare bedroom? If your kids regularly do homework in the kitchen, purchase a rolling organizer cart to hold paper, books, folders and pens. Or, if you have the room, add a table just for homework time. It's a good idea to arrange furniture in your living room and throughout the house to better use the space you have.

2. Add quality fixtures
Instead of spending tens of thousands of dollars on a large-scale remodel, give your home a luxurious feel by adding high-quality fixtures. For instance, splurge on top-quality kitchen-sink fixtures. Find artistic light-switch covers or antique chandeliers, or add towel warmers to your bathroom. A top-quality shower fixture is another inexpensive upgrade. These small updates can have a major impact, especially when you decide to sell.

3. Create an outdoor room
Outdoor rooms for cooking and entertaining are becoming increasingly popular. Maybe you can't afford a luxurious outdoor room with a wood-fired stove and a sink, but you can still create one on a budget. For instance, why not add a freestanding fire pit to your deck? Or purchase comfortable, high-quality outdoor furniture, outdoor lighting and perhaps a fountain? In this way, you can create an entirely new living space for you and your family without maxing out your credit cards.

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4. Create a recycling center
The good news is that many people are recycling way more than they used to. The bad news? Our homes weren't built with large-scale trash sorting in mind. All those papers, plastics and cans have to go somewhere, right?

Add a little luxury by creating a recycling center. Purchase an automatic, hands-free recycling sorter that hides the trash from view. Or add shelving in the mudroom or garage to accommodate different bins for sorting.

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5. Focus on furniture
Maybe you can't afford to redesign your entire living room. So why not focus on buying high-quality furniture instead? At least you'll be able to take it with you when you move.

Furniture can run the gamut in price, especially high-quality pieces. Check Craigslist and local consignment shops first to buy quality pieces secondhand. You can also add small touches of luxury with the pillows and fabrics you choose for your furniture. Your couch may be a bit dowdy, but it can be transformed with a cashmere throw and a few nice pillows. Little details like color and texture can have a big impact.

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