Paracord is for emergencies, right? Survival and such. Well, out in the wilderness, you'd also want a compass with you, in case you need to know where you're going. Why not have both at once?
Step 1: Make a Paracord Bracelet
There are many different patterns for creating a Paracord Bracelet, and it all depends on your preference. For some great examples, check out StormDrane's instructables.
Step 2: Preparing the Mini Compass
Smaller compasses are better for putting on the buckle of a paracord bracelet. It makes it less bulky, and more convenient. I got my compass from a little carabiner that had one attached. If it's a little plastic one like this, you can just pop it out the metal case with a screw-driver.
Step 3: Attaching the Compass
Just get any good super-glue, dab a bit on the buckle and place the compass in the center. If you really want to go hard-core, you can take a soldering iron and meld the compass to the buckle. It's a bit more permanent.