When we first moved in I was nervous that we'd have enough space for our family. Its 15 steps from the back of the house to the front, and even less living space wide. But the open, yet defined space, the light, the split level, the high ceilings and the energy efficient appliances sold me and now I don't even miss having extra space.
Three of My Best Tips and Tricks for Creating a Successful Small Space::
1. I feel like not being too precious or fussy about decor helps. Keep everything simple. You live with a lot less but you can breath a lot more. If its something you're not happy with get rid of it. Give it to someone who needs/enjoys it more in their own home.
2. Be mindful of everything you put on your walls. If you don't absolutely love it, don't put it up. And be open to change. You might want to change it in 6 months, which is why removable picture hangers are AWESOME.
3. Baskets. I found with a little kid, baskets are amazing at hiding and picking up toys, shoes, clothes in a pinch.