I made this for my sister this year. It was super simple to make. The stencil we found at Wal-mart and then I took apart a pallet and cut each piece to fit each phrase. Tape the stencils to the piece of wood (make sure it's all covered so the paint doesn't run) and then spray paint. Remove tape and stencils then attach each piece to your base wood which also doubles as the tree "stem." Then Polyurethane - I like the spray paint kind and attach a picture hanger or drill a hole in the back.
I think my sis really likes it because now it hangs year round in her house!