Sew the design on one of the pieces of fabric.  Then lay fringe along the bottom edge between the side seam allowance with the fringe facing toward the top. 
Stitch in place.

Place the other piece of fabric on top, and make sure that none of the beads are falling in the side seam allowance.  Sew three sides together, leaving the top open.

For the pocket, take the 8"x4" piece of lining and fold in half.  Sew three sides, leaving top open.

Fold unsewn seam, hem.

Turn right side out.  Center and sew pocket onto lining piece.

Sew lining right sides together, leaving opening at top.

Slide lining over the purse so right sides of lining are facing right sides of purse.  If using a cord for a strap, place the cord on each side seam.  Sew the lining top to the purse top.

Turn right side out and slip stitch the opening at the bottom of the lining.  Add a zigzag stitch to secure the cord handle.

If using fabric, hem the sides then sew together.  Insert tubing for shoulder comfort and longer-lasting handles.

Attach fabric handles with a square stitch.

Sew Velcro in the middle of each side.  Patricia used a decorative stitch around the entire top to hold everything more securely.