Nugget's Nursery - The Beginning Stages

This week I was talking with my great friend Bri  and we had this conversation:

 Me: "You know when we were younger, I felt people our age really had their shit life together by now."

 Bri: "I think you have done a really good job at getting your life together."

Me: "Umm really?  Because we are having a baby and we don't even know where we are going to put this thing wonderful bundle of joy."

So why am I telling you about some meaningless conversation that Bri and I had?  Well because it has to do with little Nugget's nursery!  As I was sitting in work on Wednesday, I came to the conclusion that I needed to make a nursery.  I then had to text Dufda to let him know what will be happening in our house.  This annoys the crap out of him, but I make most decisions like this.  He said "O.K," but we will see what happens when we actually have to start remodeling.  We were originally going to make the closet in our room into a crib space.  As seen here on Pinterest from apartmenttherapy.com:

Regardless of what we do, our baby will be living in a "closet".  This subject has been brought up by several people so far.  Dufda and I currently live in, what I refer to as, a one bedroom, one closet house.  When I moved into this house at the ripe old age of 19, my thoughts were not to make it suitable for family living, but instead to make it suitable for a 19 year old who has far to many clothes and a whacked out sense of color combinations.  This is all my mother's fault.  Growing up, my rooms was red, white and blue back till I remember.  I don't know if I chose this, but I grew to hate it.  Before that it was decorated in dinosaurs due to sharing with my older brother.  When I had my own house to decorate I wanted to make it fit my style, so this is what I created in what should have been bedroom #2.

It is a little bit excessive.  Dufda has only the far left corner, so he is definitely not the problem.  I made a huge step last week and went through my clothes and shoes.  This produced three bags of clothes and one bag of shoes for my super cute cousin and definitely the best dressed member in our family, Hilary.  I felt like the time where you don't really fit into your clothes and you feel fat and nasty during pregnancy was a perfect time to preform this task to yield a higher clean out.  I still have way to much stuff, most of which I do not need.  So what should I do to make this room into a nursery?  Recommendations are greatly appreciated!