Clean it Out
Clutter makes any room look smaller, and the bedroom is no exception. Spend an afternoon pulling everything out of the closets and drawers and off of your shelves, and get rid of anything you haven't worn or used in a year.
It's important that you look at your collected knick-knacks with a critical eye and ask yourself: do they really fit in the space? Keeping some decorative pieces is fine, but you'll probably end up with some extra pieces. Once you've decided what to keep and what needs to go, it's time to organize a bit more!
There will most likely be a few items from your purge that are in bad shape, and those go in the trash pile. Some things might work well in other rooms of the house, so put those in their own pile. You'll also want a pile of items that you don't want to keep but are still usable. You can donate that last batch at your local thrift store. At tax time, you can write off those donations, so this step doesn't just help you stay within your budget; you'll actually save on your tax return!
Once you've gotten rid of all of that clutter, make sure that everything left in your room has a place to live.
Now that you have your wall color chosen, the cloth accents and headboard are up, and everything is tidy, it's time to finish your room off with some art!