I have seen a lot of my friends live in old fashioned houses with outdated furniture and the state of their bathrooms would even make the people from Roman era laugh if they had a chance to see them.
As opposed to the popular belief it is very cheap to refurbish your house with new flooring and furniture and ofcourse a good looking bathroom.
Living room: Sofa : Rs 35000-50000 would get you a top of the range teak wood sofa.
Get a 32 inch LCD and get rid of that 20 inch crt which would cost you Rs35000
Get a glass top dining table for about 25000-30000 with six chairs.

Flooring : Get wooden flooring or if you want to save up a bit go for a rub to match with your rooms colour and interiors.

Bath room : If bath tub is not your kind of thing then you could get a shower enclouser and that would keep the floor of your bathroom dry always. Get rid of those ancient "buckets and mug"
There is no need of a bucket in a bathroom, buckets are for the garden so keep them there.

Bed Room : Get good flooring a posh wardrobe and a bed with spring matress and that would do it all.