It's time to get a little creative within a few easy steps using almost any image. Custom shapes have many uses in Photoshop but here is a quick and easy method that you can customize in many ways. Start by creating a new document at 400 x 600 pixels wide. You can leave the background white for now.
Lets add some color by adding an adjustment layer through the color picker. In this case, I choose grey.
Choose the custom shape tool, and will will see a dialog box open with a variety of shapes to choose from. In this chase, I am choosing the oval with the scalloped edges.
Position the shape somewhere in the middle of the image that you have already created. You can always enlarge it later if you wish.
Find an image that you wish to work with and load it into Photoshop. Paste it on top of your project (Select All, Edit..Copy, Paste).
Make sure that your image is on the TOP layer and RIGHT click on the layer (not the image). You will see a choice to create a clipping mask.
The image will conform to the custom shape that you have chosen. You should see a downward facing arrow from the top image indicating the the image has been clipped to the custom shape. If the custom shape is not large enough, simply click on the shape layer and enlarge it. From here you can add text or additional art work to your creation. You colors by clicking directly on the color picker layer.