Sharon, it is your choice, but you have the freedom to start 2012 back at $0. I certainly did, as I ended the year with a - balance. I notice some people who ended the year on a + balance have carried that over, and that is good too. As Kelly always says, it's mostly about making us more aware of what we are spending and also conscious of what we do have and to try to use what we already have instead of spending more.
You are certainly approaching this the right way, by sprucing up your craft room and organizing it all. I'll be looking forward to seeing the photos. And you don't have to count what you spend on fixing up your craft room....at least that is my take on it. Maybe someone else can clarify that.