Sometimes I just want a small purse to carry my cell phone and keys instead of hauling around a big handbag. I made this little clutch (it's about 4½" square) from scraps of olive green, gold, orange, and sky blue felt. To make a similar bag, follow the directions below, substituting felt shades to create your own color scheme.
Start with a 4½"-by-12" piece of green felt. Cut small squares and rectangles from orange, gold, blue, and green felt and arrange them in a layered pattern along one short edge of the green felt strip. (This will be the flap of the purse.) When you like the way the arrangement looks, sew the pieces in place with gold or green thread and blanket stitch.
Place the green strip facedown and place a 4½" square of gold felt on the wrong side of the decorated edge of the green. Extend the gold piece about ¼" beyond the short edge of the green piece. (From the front, the gold will peek below the edge of the green flap.) Using matching green thread and blanket stitch, sew the gold piece to the green piece. Next, fold the plain edge of the green felt up about 4½" from the plain edge and sew the sides together with blanket stitch.
To make a fastening for the bag, sew a loop of cord or thread (I crocheted a small piece of orange embroidery floss) to the wrong side of the flap. Sew a small coordinating button to the front of the bag so it matches up with the button loop.
If you feel your blanket stitch isn't up to par (mine's still not as even as I'd like), running stitch or backstitch will work fine and look just as pretty.