I saw a simpler version of this in a catalog and decided it would be way more fun to make.
You need felt, embroidery floss, beads, pom-poms, rick-rack or anything else you have in your craft stuff.
Make a template out of cardboard and trace onto felt to get as many pairs as you want (I made 24 prs)
Organize in pairs by color, pinned together for sanity.
Decorate to your heart's content
Hang on a yarn braid.