This is how I did it:
I cut a circle of 6.5 inch diameter with some room around the sides for the bottom of the purse.
I pinned and sewed each of the four panels together.
For the cinch, I placed red ribbon at the top of the panels. I folded the fabric over the ribbon where I could pin and sew so the ribbon was loose inside. Leave openings on both ends of the panels, and be careful not to sew the ribbon to the purse.
Pin the panels in a circle around the bottom of the purse. I hand sewed the bottom of the purse since it needs to be gathered a little bit.
Keep the purse still inside out, and sew the panels together to close the side of the purse.
Step 6 (optional):
I chose to sew some decorative lace around the opening of the purse. Also, you can make an insert (cut cardboard with fabric sewn on) to stick in the bottom of the purse.
This was a simple project I did when I was bored. Now I have a new purse! I'll be sure to post more DIYs soon.