Neat. I keep my hanky in a ziplock, as it's to loan out to others in an emergency, so I'd like to keep it fresh and clean. I actually use my bandanna all the time, so it's just folded in my other pocket.
You didn't ask for critique, but I can't resist. If there was just ONE thing I'd think of adding, it would be some tinder material. For me, the hard part is getting from the BSA spark to a flame, and only some materials will do that for me.
You could carry a cotton ball (dry or with PJ) or prepared SparkLite tinder. You could also carry one of those packets that have a Q-Tip in one end and some antibiotic cream in the other. That could double as first aid and fire starting.
Bear
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No fire, no steel.