Abstract: An expandable wallet bag (10) that consists of a zippered compartment (12) and a zippered tote bag (13). The tote bag (13) is designed and dimensioned to be inserted into and retained within the compartment (12). The compartment (12) includes an accordion pocket (76) and strap retaining flap (86). The accordion pocket (76) is dimensioned to allow various articles to be inserted, and the strap retaining flap (86) allows a belt or the like to be retained which allows the compartment (12) to be secured when the tote bag (13) is stored within the compartment (12). The tote bag (13) can be designed to include a pair of bag carrying straps (57) or a pair of backpack straps (73). The straps (57,73) allow the tote bag (13) when extracted from the compartment (12), to be easily and comfortably carried. The tote bag (13) preferably includes indicia 99 that simulates the markings of a basketball, a baseball or a soccer ball to give the expandable wallet bag (10) the look of a sport bag.