My 1st purse, it needs bamboo handles as shown in the pattern but I can't afford $21 for a purse made with left over yarn. Anyway i am pleased with how it turned out minus the handle problem, I just made 1 up, LOL, I didn't use 3 colors as it showed, just used up what I had, still have enough to make my pillows.
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mypurse.jpg
Here is the site the original pattern came from, it is a free redheart pattern
http://www.redheart....bed-project-bag
Jeannie
Your bag is very pretty! As mattenylou said you can look for old purses for handles or also if your lucky enough, once in a while you can find them marked down at JoAnns. I don't get to go there very often, but the one time I did go last year I found several on clearance for $1! Boy did I scoff them up! 
You might want to check for purses at your Goodwill or local consignment shop, often they are inexpensive and you can find a handle that will work.
Right now I'm working on this Doll Dress Purse, the directions suggest using a piece of jump rope as the base for the handle and working your stitches over that. It's been years since there's been a jump rope in this house, so I clipped off a section of clothes line that's been hanging off my basement rafters since I moved here, I think. So far, it's working fine and it doesn't show, anyway.
Hey, necessity is the mother of invention!
Ohhhh, that doll dress purse is so cute! Great idea to use clothesline instead of the jump rope too!