Well, I did it. I made curtains for my living room. And let me tell you: I was pretty dang proud of myself afterward. SO, how can I do it for $40, you ask? Well, let me tell you.
Fabric: $25 (From JoAnn's AND bought during their Columbus Day sale--half off)
Curtain Rod: $8 (From Ross. Always a great deal)
Thread: $1.something (JoAnn's. I go for the cheap stuff)
Ribbon: $1 (JoAnn's. Once again, 1/2 off)
Sheer fabric: $2 (Ross. Amazing)
And I HAD to make mine a reddish color, since my couch is a weird shade of red, but I believe you can do this for any color combo you need. Now I just need to do this for the rest of my bedrooms.