I came up with this idea to save space by turning my cat's carrier into a bed instead of trying to find a place to store it. This can also be done with a cardboard box, storage bin or an old litter box (sterilized of course).
I have set the price as free because these are things you most likely have around the house already if you own a pet and all of the items can still be used for their original purpose.
Take your pet carrier and separate the top and bottom sections and remove the door.
Place the top half of the carrier upside down with the door resting inside it. Then put the bottom inside the top and reconnect the clips around the sides.
Lay out your bed sheet if you plan to cover the outside of the kennel. This isn't required but looks nicer. Place your carrier as it was assembled in step 2 in the center of your sheet. Fold the sides of the sheet over the carrier and arrange the remaining fabric evenly inside.
Cover your pillow with the pillowcase or small blanket (I used an old airline blanket) and tuck it into the top of your carrier assembly. Push the corners down inside to give it a more puffy look. Add pet and done!