My materials were easy to come by as well. Our $ Tree had these gigantic stockings made of felt so I picked up 2 of those. I free-handed each letter onto the felt using a Sharpie. I used my sharp sewing scissors to cut out a double thickness of each letter. I sewed random buttons and other bits of bling onto the "front" of a single thickness of the letter using embroidery floss or thread. I followed that up with a blanket stitch all the way around to attach both pieces of each letter to each other. I finished each letter with a piece of narrow ribbon at the top for hanging.
Total time (for 1 letter) from beginning to end: approx. 45 minutes. I completed several while watching Dr. Seuss's How the Grinch Stole Christmas and White Christmas, 2 Christmas classics. You could easily get some of these made for your tree or to give a Christmas gift that personal touch in just a few hours. If you have any to spare! I'd love to see what you come up with if you do give this a try.