I am going to show you an easy way to put your images inside text with a slightly different and in my opinion a more versatile way than the most common ways people use to achieve this effect.

1) Start by opening the photo that you want to place inside your text. For this tutorial, I am going to use this photo.

2) Select the “Horizontal Type Tool” (T), type your text and place it on top of the part of the image that you want to include inside your text.

3) Right click on the Text layer and choose “Create Work Path”

This is the main advantage of this method. By creating a work path from the text before you make a selection you can easily transform, skew, scale and generally alter the look of your text before you place the photo within it without creating any jaggies.

4) Select the “Pen Tool” (P), right click and choose “Make selection”.

5) Delete the text layer, and without deselecting go to “Layer” -> “New” -> “Layer via Copy” (Ctrl-J)
You can now delete the photo layer as well. You should now have your text with your image within it on a transparent background ready to be used for your designs.

If you want you can apply different blending modes to it. Here is my final result with a simple stroke.