This post from A Handmade Year will show you how to crochet letters and words using a squared paper pattern.

Love the colors! The famous Around The World quilt-style bedcover, free pattern by Karen Buhr. Fits a queen-size bed (73 x 94). Pattern requires 576 two-round granny squares (center) 208 five-round squares for the solid border, which are then sewn together. Squares could be made larger JAYG

Color Theory: Here the author explains three ways of combining colors that will cause the item you are crocheting to be absolutely striking. This same theory could help you to assemble some very striking outfits to wear. This is just a great lesson in combining colors that I know I will be using again and again.