The Sweater Bag is a free pattern from Lion Brand Yarns. When I first saw it, I loved the cables. I have been using this bag as a purse lately and it holds everything I need and a bunch of junk I probably don't need.
The bag is made by knitting two seperate panels in the round and a strap. One panel for the front and another panel for the back. After the panels for the bag are finished, they are sewed up and then sewn together.
The thing I would change if I knit another bag like this is the lining. The knitted lining is very heavy and it seems like I could save a lot of time by just knitting the cable seams and sewing some other lining into the bag. Also something else I have thought about changing is the strap. I wouldn't do the strap in Garter Stitch again. The Garter Stitch is nice, but it is very stretchy. I would knit the strap either just in stockinette stitch or in a cable similar to the cables on the bag.