My husband and I lived on a farm and through the years he wore and wore out many flannel shirts. I saved them all and finally made a crazy quilt from the best parts of them, including some pockets and buttons. Now that he is gone I have a warm reminder of him and the years we had.
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Don't get too eager to start cutting a shirt into rags. Take a good look at what you've got on hand: Buttons, button down pockets, placket-ed wrist bands with buttons, collars etc.
Take off the buttons and use them on a paper bag to make it a gift bag. The buttons can outline anything from trees or flowers to a smiling face. Then take the shirt itself, cut it up, and use it to dust your furniture.
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My nephew was born on my birthday, March 1st. He was early, due June 12th and weighed only 1 lbs 11 ounces. He is doing very well now. So what do I do? make another quilt : )