+1 to everything said thus far -- good advice. Especially corners -- If you're on a budget, I'd tackle corners first. But do it RIGHT.
I'd stay away from foam generally -- you're much safer with acoustic panels built from mineral wool or fiberglass. Material like Rockwool isn't terribly expensive to DIY. I went with a Fiberglass panel setup (more expensive than rockwool) in my studio. I've got 4 broadband absorbers and 4 bass traps, and it cost me about $400. I bought frames pre-made, and assembled the panels myself (semi-DIY). A 100% DIY with rockwool (4 broadband and 4 bass traps) could probably be done in the area of $200, depending on where you live and availability.
You absolutely can go wrong with ANY treatment, not just foam. If you start throwing insulation everywhere without consideration, you could no only be wasting money, but you could be making your room worse. The issue with foam is that it struggles with low-end frequencies. It handles high-end frequencies very efficiently, but it looses effectiveness around the 300-500hz range (depending on thickness). I haven't personally tried foam "bass traps", but I'm highly skeptical.
If you throw foam everywhere, you're going to be treating the high ends, but not the low ends. That's going to result in an extremely bass-heavy, boomy room. That will translate to a very thin and tinny mix, since you'll be boosting the high end way too much and dropping out the low end to compensate.
GIK Acoustics has a great education section on the basics of acoustic treatment.They're great guys, and would be more than willing to help you out if you send them an email. And in the spirit of full disclosure: I have bought absolutely nothing from GIK -- I just have a lot of respect for the company.