A convertible clutch and footwear storage system is disclosed herein. The present invention includes a convertible clutch-style purse for conveniently storing various items. The convertible clutch includes a first compartment for storing personal items such as a wallet, money, ID, cosmetics, etc.; and a second compartment for storing footwear. The convertible clutch is movable from a folded condition to an unfolded condition. In the folded condition, the second compartment is sized to store flat shoes such as flip flops. In the unfolded condition, the second compartment is sized to store high heel shoes.