Coaster Bag Instructions by Dee Kitchell
Copyright 2001 Sew Terific Designs www.sewterific.com and Dee Kitchell
I took 4 scraps of material 6" x 8" (2 used for lining) at one end of the scraps, I cut the corners by a 2" 1/2 square, 

|               |     Your bottom will look a bit like
|               |     this only even :-)
|_a_        __b_| 
    |       |
   a|_______| b         
        c

I also cut 1 strip 2" x 16" to be used for the straps.  After sewing the 2" strip lengthwise (right sides together); turning it right side out and cutting in 1/2.

a.   I placed the ends of the each strip on the right side (opposite end I cut corners from) of the fabric.  I placed it in a sandwich (lining, handle, main fabric)  with right sides together and stitched together.  Do this with both sides.  

b.  Next iron the "sides" and place lining halves together right sides together, and main fabric right sides together.  

c.  Stitch down both "sides of the open bag.  (you will now have the "notched" ends at top and bottom of bag. one end will be your lining fabric and the other end you main fabric.

d.  Stitch along "c" HOWEVER leave an opening of about 3" for turning on the lining side.  

e.  In each corner;  place your "a" sides (match seams from the side and bottom which was part of "c") together and stitch; "b" sides together and stitch (ALL four sides) 

h.  Turn the bag using the opening from the lining end. Slip stitch the closure and turn bag so lining is on the inside.  

i.  When turned and opened the bag will sit freely by itself.