Here's a closer look. See that hideous permanent fabric softener stain. Also the beads were $4.99, but with my 40% Hobby Lobby coupon brought it to $2.99 =)
Start with the bottom, cut the bottom end of the shirt where the hem is. We won't use this part. Then all you have to do is cut the shirt horizontally into strips. I cut them roughly to 1/4 inch strips; it's okay if the strips are not perfectly straight. I actually think it gives the necklace texture with the uneven, ridged strips. Please see pic below...
For this necklace, I cut 18 t-shirt strips since I had 18 beads. 1 t-shirt strip = 1 bead. I think the more t-shirt strands the better, fuller, and more dramatic the necklace will look. Here is what the 18 strips of t-shirt looks like...
Once you have cut the 18 strips, cut each strip along one side of the hem that joined the t-shirt. This forms a straight strand rather than a circular strand. You need to do this so you can strand the beads onto the t-shirt strips. I divided the 18 t-shirt strips into 3 sets of 6. One set's length was left as is. The second set's length was cut 1 1/2 inches shorter. The third set's length was cut 2 1/2 inch shorter.
Now you can start stranding the beads to the t-shirt strips. I found it easier to twist the ends of the strips with your finger. This makes the strip "skinner" and easier to loop through the bead. See picture...
Once all 18 t-shirt strips are stranded, single knot each strand together to ensure the beads will not come out. Join the tied ends of all the 18 strands together. At this point, you will have plenty of t-shirt left over so cut a 2 inch strip of t-shirt (just like you did in the beginning). Cut one end of the strip to form a straight strip. Tightly wrap this 2 inch strip around the part of the strands that are knotted. Then, just tie the 2 inch strip to the necklace and tuck it in at the end. This will make a more polished and finished look. You can see where the strips are joined together at the top. Adjust the beads as needed, so that they are evenly distributed among the necklace. Here is the final product...
Here is a similar one from Urban Outfitters...
and another one from Anthropologie...
Hope you too can be GREEN and FASHIONABLE =)