You will probably get tons of suggestions from eager readers and I'll be interested to see how many keep your budget in mind. I'm somewhat where you are - no kitchen remodel or even redo at this point; just some tweaks to make it all more appealing. Happily I'm going for a country/cottage look and your kitchen seems to suggest the same. It's quite appealing although the cabinets with the ceiling are a bit much. If 'twere mine, I'd keep the ceiling, paint the cabinets the white of the island (might be tricky as the cabinets look quite "knotty"). I'd add some hardware comparable to the hinges on the cabinet. I'd opt for a bright green wall color but you need to work with your current backsplash so might be best to stick with what you have at the moment (although I think can you can paint out tiles and there may be a way to change out the green). There are going to be those who tell you the ceiling wood color and the floor wood color don't work together and maybe they really don't, but you do have a limited amount of money to spend. You might decide some day to paint the ceilings white or light as well but that's some day, maybe. For the time being, I'd do cabinet paint and hardware and then reevalaute. You might be quite delighted with just that much change. (I would ditch the two "high chairs" at the island - too high and uncomfortable looking, plus another wood color). Again, I think your kitchen is quite charming in its potential and I'd love to see what you end up doing.

I'd vent the stove to the outdoors and replace the two chairs next to the island.

I would paint ceiling white, Remove chairs at island and get stools, they appear too large, but maybe that's just the photo. Stove needs a vent, for sure. Can you move fridge to cabinets on right hand side, would help make the room come together. Paint walls white.

I'd remove the corner "shelves" and just have simple cabinet.

White ceiling, new counter tops, new back splash

These are such fantastic suggestions, I really appreciate it!

Be careful painting cabinets that have so much wood grain as it will show through unless you were painting them a dark color. Maybe try painting inside of a door first...try making small steps at first.

I think you cold keep the cabinets as they are but update the hardware and backsplash. New stools. Remove the useless shelf from above the stove and add a cool clock. Update the color.

I'd say paint and backsplash, that'd keep you in the $1,000 range you're looking to work with. I think a more modern/simple backsplash would work. I think our Noir Subway tile would work well, you can see here- http://www.granitetransformations.com/southjersey/products/mosaic-tiles/colors/subway/

I'd paint the kitchen something similar to Revere Pewter by Benjamin Moore; something warm and earth-toned would be ideal for the cabin.

Hope this helps!

Paint (either ceiling or cabinets, but the ceiling would be easier) and a new laminate countertop are definitely affordable. Look at white subway tile or a tin backsplash too. DYI can stretch $1000 pretty far.

You *could* paint the cabinets white, which would be fine, but I would go with a slightly more subtle approach: sand and apply a translucent whitewash plus varnish. The idea is to get the cabinets and the island top close to the tone of the ceiling, which is very appealing.

I like the backsplash and matching walls very much. I would, however, get different barstools, perhaps white ones.

Since the color of the floor and ceiling don't match .. and then the cabinets are in the middle of the two. I'd add a vote to paint the ceiling, A) it's easy (give it a good wipe-down, primer, paint, enjoy) and B) it would give such an airy feeling to the space. For the island, if you extended the edge so the piece appeared more functional and slipped some stools underneath I think you'd find that you just saved a lot of money! It's a cabin after all, you don't want to lose that feel.

I'd save my money and effort until I had some real coin to re-do. I think it's pretty nifty for a cabin as is! In the meantime, I'd go with cosmetic fixes keeping the red/green thing it looks like you've got going on. 1) get backless stools for the bar in red 2) replace the shelf over the stove with something beefier, and easily cleaned, in white and add a couple useful pieces on it--cast iron cooking pieces, perhaps 3) put a red clock over that white shelf 4) pick up two dynamite rugs in red/green/white/other, one in the kitchen (larger than what is there) and one for the adjacent dining area 5) red/white dishtowels to hang on the rack 6) have fun!

paint the cabinets and ceiling white - very inexpensive. maybe a white subway tile on the backsplash. paint right over the hinges as well. subway tile 3 x 6 can be found for 1.50 sq ft. will look oh so cottage chic and in the budget ;-)

The cabinets are perfect for this cabin look. Paint the ceiling white and find a lodge look house on houzz web site to find a color that blends well with the cabinets. You can punch in knotty cabinet, lodge look to get some ideas. I would remove the back splash and repaint the green. I think you'll have a wonderful transformation with those two items changed. Also, as the others said the bar stool and the shelf, must go.