I had iron-on labels printed cheaply, here's a tip: They were advertised as the kind of labels you have your kid's name printed on for summer camp clothing. I had them printed with a variation of the name of my blog instead. Every other kind of custom labels I looked at were crazy expensive.
I added 'Chaos' instead of 'Dreams' to my labels because my house looks like chaos when I'm doing any sort of crafting, and I guess my method of crafting is pretty chaotic too.
I found the fabrics at Walmart, pre-cut into 21 X 42 inch squares for $2.47 each.
The tutorial for this bag can be found here.