Determine a purpose for your attic that matches your family's needs and budget. Because it's a small space, it will probably be more beneficial to have one room with one purpose, rather than making several smaller rooms divided by space-consuming walls. Think about using the space for something that typically requires less space, such as an office, guest room, child's bedroom or playroom.
Remodeling your existing square footage is less expensive and less time-consuming than an addition, but attic spaces come with their own challenges. You will likely need to frame the space and build walls. Insulation is also commonly lacking in attic spaces. Your attic also likely will have sloping walls and a low ceiling, which will make the space appear even smaller. Because the attic is typically on its own level, existing electricity and plumbing lines might not be installed, which will increase the remodeling expense of the room significantly. A lack of windows also will make the space darker.
Skip having an attic bathroom if possible to avoid the costly additional plumbing. Windows, skylights or recessed lighting can help add much needed light to the room. Add dormers in the renovation plans to counteract the sloping walls and angles.
The use of lighter colors will make the room appear larger and brighter. Use furniture that is of a smaller scale to make the most of your square footage. For example, opt for a daybed, rather than a queen size, and use a TV console that is low to the ground, rather than a large armoire. Add storage areas to your attic room so that you can still use it as valuable storage space, as you might have used it before the remodel.