Oh, oh, oh . . . I've got to reply to this thread since fire safety is "my thing" -- my reason for living (well at least the reason I get paid each week.)
First, to answer the question . . . I've got four ABC fire extinguishers in the house. As mentioned by one poster it is important to place the detectors in easy-to-access locations that are close (but not too close) to the most likely areas where fire could occur (i.e. cooking fires are the number one cause of fire so a fire extinguisher is in my dining room closet).
Second . . . fire extinguishers are important, but even more important in my opinion is to practice and constantly think about fire prevention . . . followed very closely by working smoke detectors and carbon monoxide detectors in the home.
A few considerations before using a fire extinguisher on a fire.
1) Make sure you have the right type. In most cases this is a no-brainer since most folks have ABC dry powder extinguishers in their home -- although some folks may have bought a BC-rated dry powder fire extinguisher (typically these are marketed as "Kitchen" fire extinguishers and often may be white in color). A = Ordinary combustible materials (i.e. plastic, paper, wood), B = flammable liquids and gases (i.e. gasoline, oil, kerosene, etc.), C = energized electrical wiring or devices (i.e. TV, stove blower, toaster, etc.), D = Don't worry about it . . . combustible metals (i.e. magnesium, sodium -- very rarely seen by most folks outside of some specialized industry/military), K = commercial kitchen grease fires (again, don't worry about it -- basically this is for the large fryolator vats of grease . . . not you cooking at home with a pan of frenchfries or a Fry Daddy.)
To make things even easier just match up the pictures on your extinguisher . . . A = picture of trash can and a pile of wood on fire, B = gas can and pool of fuel on fire, C = electrical outlet on fire. If the picture is there and not crossed out you can use that extinguisher on that type of fire.
2) Before you even grab your fire extinguisher you should (or have someone) call 911 and get the FD on the way. It's always better to have to call us back and tell us you've put the fire out (we'll still come out to check things out) . . . but better this than to think you can handle the fire and don't want to make a scene, bother the firefighters, etc. and then be standing outside your burning home when you call us 10 minutes later while flames are consuming your living room, kitchen, etc. Time is the enemy when it comes to fire -- the faster we know about the fire the faster we can respond and mitigate any possible damage.
Besides calling 911 make sure everyone in the house is aware of the fire and on their way out to the meeting place.
3) Don't breathe in the smoke. Depending on what is on fire the products of combustion in the smoke can be quite hazardous . . . especially when you consider that a typical home has lots of plastic, carpeting, paint, household chemicals, etc. Sitting around a campfire and getting a charge of smoke in your face is not fun . . . getting a blast of smoke from a typical fire in a home just plain be dangerous to your health. If you can stay low and avoid breathing the smoke, use the extinguisher . . . if there is too much smoke to stay below the smoke layer, get out.
4) Finally, small extinguishers are like a Band-Aid (thank you Ron Coleman -- California Fire Marshal for that analogy) . . . they work great on a small fire, but for a large fire they're not going to cut it. If the fire is bigger than you, chances are you will not be able to put out the fire with that extinguisher . . . I mean, think about it . . . do you see pics of the firefighters in your hometown attempting to put out a house fire with a portable fire extinguisher or are they manning the biggest hose line they can find?
Start out 8-12 feet from the fire and remember PASS -- P = Pull the pin (typically held in place by a plastic clip -- this can be snapped off my making a twisting motion like turning a key in a lock), A = Aim at the base of the fire, S = Squeeze the handle and S = Sweep back and forth side to side, approaching the fire slowly as the flames decrease.
You get one shot at putting out a fire with an extinguisher. If the fire doesn't get put out, you need to get out. By the time you go and grab that extinguisher you have stored in your upstairs closet and get back chances are the fire will be as big if not bigger than it was before.
Finally, remember to replace that extinguisher . . . most extinguishers today are designed for one-time use. In some cases you can recharge them, but typically it's an expensive proposition to do so.