I found these jeans at a good will store for $2.50....go check out your local thrift store!
First, put on your jeans and mark the spot where you would like to cut them....try not to mark them too short, just in case you want to fray them. You can always cut more if your not satisfied, however, it's a little harder to add length back onto the shorts.
Use fabric scissors to make your cut...it doesn't have to be perfect.
Fold the pants in half, this way you don't have to "eyeball it" when your cutting and your sides will be even.
For this step, use your pencil to mark a half moon shape across the bottom of your shorts....this will make the front of your shorts a tad shorter than the back (as shown below).
Use a pair of tweezers to distress your shorts..I found it was easier to hold the tweezers at an angle.
The tweezers let you determine how "distressed" you want your shorts.
The picture makes the shorts look uneven, but I promise they're not!
You could also cuff your shorts and use a sewing machine to assure the cuff doesn't come out.
The step below is optional, I just thought mine needed a little something else, but it's totally up to you!
I found these pyramid studs at hobby lobby for $1.49.
I used the tweezers to press the ends down.
I didn't want my studs to be in a perfect line, nor could I figure out how to!