Create a foundation for your neutral color palette by painting the interior walls in your beach cottage with beige paint. Use matte and semigloss paints appropriately so high traffic areas can be cleaned easily and other areas don't look too glossy.
Balance the light color of the paint by installing light to medium-colored hardwood floors. Balance is essential in a neutral color palette to avoid having your beach cottage look too stark -- and hardwood flooring draws upon the natural look of your beach surroundings.
Install white or beige cabinetry in your bathroom and kitchen, being sure to balance each room out with the wood flooring and decorative kitchen accents and linens in the darker neutral colors of black, gray and brown.
Opt for lighter-colored neutrals for furniture upholstery but add visual interest through the use of textures. Choose upholstery and decorative pillows in various textures, including smooth cotton, raised knits, thick wool and silky satins.
Lay down natural grass rugs in your living room, under the dining table, and in the foyer. The use of rugs made from seagrass or sisal help connect the interior of your home with the natural beach surroundings outside your door.
Add small decorative accents in a beach theme to complement or coordinate with your neutral color decor. Incorporate small splashes of color with framed pictures of native birds. Use painted metal buckets to hold wood by the fireplace or serve as small trash receptacles in each room.