Create mask out of this layer now: Layer ? Add Layer Mask ? Reveal All and choose the Gradient Tool of black color to move off almost totally the layer's visibility:

Burning Idea

Merge down the grouped layers (ctrl+e) and open in a new window the picture of a burning paper (ctrl+o).

Burning Idea

Make a copy of it and insert one of the paper's corners on one of our wallpapers' corners:

Burning Idea

Change the layer's Blending Mode on Multiply and erase the background's layer with the Eraser Tool on that place where it is necessary just to make the fire visible.

Burning Idea

Make the corrections now on the burning paper's layer concerning the brightness and the layer's contrast (ctrl+l).
  


Burning Idea

Make small corrections also on the color, applying Image ? Adjustments ? Selective Color.

Burning Idea

Decolorize everything now, except the fire, selecting the Sponge Tool.

Burning Idea

Make a copy now of the pencil's layer and decolorize the copy, applying next option: Image ? Adjustments ? Channel Mixer.

Burning Idea

Using the layer's mask and the Gradient Tool make that decolorized pencil's half totally invisible:

Burning Idea

Change now the pencil's color: Image ? Adjustments ? Hue/Saturation (ctrl+u).

Burning Idea