Now for the fun part: the decorating. The wood panelling is dominant in the room and, combined with the very neutral wall-to-wall carpeting, is coming across as dated. The easy fix is to lean into a Scandinavian/mid-century aesthetic. When choosing furnishings, opt for slim lines and low profiles. Think Nordic design. Play up the punchy red of the bean bag chairs with geometric accent pillows that can be placed on your new sofa, and choose a rug that has bold geometry to cover much of the carpeting. It could even be predominantly red. Let that be the only pop of colour, though, and keep everything else neutral. Think charcoal grey, oatmeal, chestnut brown, a hit of black. I like the light fixture you have hanging from the ceiling, but get rid of the dated lamp in the corner. Battery-operated LED wall sconces might be a good choice, as they have a mid-century feel that will work well here and provide low, moody lighting. Layer simple patterns like stripes over simple textures like linen and wool. This former kids’ room may soon become a favourite hang-out spot for adults too.