I did what you are thinking. Do not waste your $ on fancy sound panels. I used old rugs (on the floor, walls and ceiling. You can also find on the net sources for foam sound panels for little money. I think I paid $80 plus shipping for (4) 4ftx4ft panels. BTW they work well. It may not look great but the sound was very nice. Experiement with overstuffed furniture also.
Good luck
Good luck