Thanks for the ideas. I hadn't gone to IKEA yet, there is one about 30 minutes away though. That sectional you linked looks good. I looked around stores near me, seems like $1000 is as cheap as it gets for just a couch. And the sectionals were more. I saw one I liked and thought it was $1200, turned out it was $1200 per piece and it had 2 pieces. Yikes. Has nobody else in here ever bought a couch? Do you just assume you'll keep it for a decade so it only amounts to $10 a month or something? I've been browsing Craigslist too...seen some stuff for $350, but I'll need a truck.
It just depends on your attitude towards it. At the time I would not have bought a $1k+ couch since my income was only about $2.2k a month. However, I really, really like to have a nice home and that is where I would rather spend my money - as opposed to eating out, or whatever. And yeah, I plan on keeping this couch for a long time so it's fine by me. For $400 (well, I guess closer to $500 if you count the new legs and tax) I got a brand new leather couch.
Also I personally am not a huge fan of buying used fabric things (mattresses, couches, etc.) because 1) bedbugs are rampant in my city, 2) It grosses me out to sleep/sit on something people have had sex on, etc. I know what I do on my bed and don't want to be subjected to what others do on their bed, no matter how much cleaning has been done.
Part of mustachianism is putting money towards things you value rather than frivolous things. If all my finances were in order, I would still buy an Ikea couch :)