Open a new free size document and prepare a picture like this:
Go to Filter > Sharpen > Sharpen to make it sharp.
Naming it S1
Create a new layer over S1 and use Rectangular marquee tool to make a selection:
Then use Paint bucket Tool to fill it with #f9f7f1
Merge S1 layer and the new one together. Naming it S1-photo
Select this layer then Go to Edit > Free Transform (or press Ctrl + T)
Then choose this tool:
Now edit your own picture to make it looks like flying flag (or any shape that you like):
Then press OK.
Now open more any pictures and do as steps above
You'll get the result like this
Next step, open this texture and put it under 3 layers
Create a new layer on top and fill it with #eae7d8, then set its blend mode to multiply, 69% opacity
Choose brush Tool with these options:
You can change the opacity of brush on menu bar to make it looks softer.
Create a new layer over the texture and apply this brush.
You'll get this:
Now open this picture and cut the flower out, then drag it into your document.
Use Free Transform to resize it. In addition, I changed its color so as to suit it with background.
Create a new layer and put it under Flower layer, use this brush then apply freely
Now you can add more texts or other brushes to decorate your artwork.
This is the final result: