At one point, I had to set my studio in the same space where I sleep.
I have a small bungalow so I would work downstairs (gave up to a nice
small living room and little kitchen that became my soldering spot)
and I slept upstairs (is all one space under the same roof, no
walls). At first I loved it because I was working more than ever, if
I couldn't sleep I would just jump out of bed, turn the music on and
get into finishing a piece, and when my friends came to visit they had
to seat in a chair and we would talk while closing jumprings or so...
I live in Mexico, so of course there are no regulations what so ever
in that matter, no insurance problems (no insurance at all anyway).
Even though I kept all the windows open and lots of fans, after a few
months I realized that it wasnt such a good idea, at first, all my
cloths smelled like pickle and smoke, same with my bed... but then I
started feeling some trouble breathing, you know, a cuff that didnt
go away, irritated eyes and skin (nothing really horrible, but it
started) and one day a new boyfriend came for the first time and that
was allmost the last!! I was getting used to it but when someone else,
somebody not used to our materlias and fumes hated it I baceme aware
of the situation.
I now rent a great space for my studio and love it. I think that
being a jeweler has a price: you are constantly exposed to toxic
materials, that is a price I'm willing to pay without thinking that
it will kill me because I love doing what I do, but then, if you are
not working, at least try to be in a healhty enviorment that will
give your body a break.
If your problem is about money, like my case, I think that you could
set your studio and live in the same space for a while, just don't do
it for a long time and good luck!. I hope this helps.