I really like distressed denim shorts and they are experiencing a resurgence now. You don't have to spend a lot to rock this look.  In fact, many of the items you need to create your own distressed denim shorts you already have.  Of course you can buy them but it'll be more fun to create your own custom pair (or pairs).  Follow these steps to create your own custom pair:  

What you'll need:

A pair of jeans

Scissors or an X-Acto knife

Ruler

Washable marker (the type used to write on glass or mirrors)

Optional items to distress jeans include:  

Cheese grater 

Sand Paper

Razor blade

Bleach

Mud water

Step 1.  Turn your jeans inside out and put them on, use the washable marker to mark where you want to cut the leg fabric off.  You can also use an existing pair of jeans as a template to determine where to cut but make sure it's a length where you want your cutoff jeans.  

Step 2. Using the ruler, mark where you want your slits and cuts to be on your jeans (this should be above your cut off line).  Use your creative freedom to mark where you want the distressed marks to show. Feel free to take the jeans off it makes this step easier.  

Step 3.  With the jeans inside out, cut along the marks you made to cut the leg fabric off.

Step 4.  Cut your slits and tears.  Pinch the fabric to get a good grip so you can cut a little easier. 

Optional: use the cheese grater, sand paper or razor blade to create additional distress marks on your pockets or anywhere else you feel inspired to distress.

Step 5.  Throw your jeans in the washing machine and using cold water and no detergent.  Washing the denim allows the distressing to come alive.

Step 6. Style and wear your distressed denim shorts.  The dressed look goes best with a contrast shirt that is finished, you need the contrast to prevent you from looking like you've been in a industrial size paper shredder. For extra style, finish your look with a statement high top sneaker in a bold color.

Refer to step 2, 4-6 to distress your denim even if you don't want to convert them into shorts.  Let me know how this works for you.  Stay stylish friends...