Let your creativity flow!

Tibetan bags are made from one continuous length of fabric which isn't very wide and have only 3 sewn seams. If you have a Cricket Loom, this would make a wonderful project for you (if not, save on a Cricket Loom purchase with this Blick Art Materials' Current Promo Code). If you have an inkle loom wide enough you could make one of these bags. Typically, the bags are about 2.5 to 3 yards long and about 4 or 5 inches wide.

The ends are folded over to make the "pocket" part of the bag. Lay the 2 ends side by side. Sew the selvages where they meet. First sew the center seam and then sew the outer seams. Add a closure of your choice. Done.  If you have more advanced sewing experience, add a lining, pockets, a zipper closure, etc.

I recommend you pin together a piece of cloth, a few times, to get the hang of the mechanics and to check that the handle hasn't become twisted. You may have to do this a few times, so don't be surprised if you don't get it right the first few times.  I made myself a duct tape double and use that to drape the "handle" around and then pin it together.

I have a video below which explains the process but here's a picture demonstrating which selvages get sewing together: 

The video below will give you the basic concept of how this is put together.

UPDATE: If your handle always ends up twisted: Don't feel bad, mine turn out that way too sometimes. See the tip above where I suggest draping it over a duct tape double (dress maker form). You could also use another person or the back of a chair on a table, pin it into shape and then sew it.