Growing up, we always had a "rag bag" hanging on a hook in the kitchen pantry. A basic tote bag or laundry sack, the rag bag was the place where we kept rags for cleaning and dusting. Every now and then, my mom would dump the rag bag into the laundry, and we'd have clean rags for the week...
After looking into ways to cut down on paper towels and using Twist Euro Cloths for a while, we've decided to bring back the rag bag in our own kitchen. Although we like the Twist Cloths (and they're definitely greener than paper towels), the rag bag has the added bonus of costing no money at all. Sometimes mom just knows best.
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My rags are hidden away in a drawer that is awkward to get into. I like this idea better!
I ripped up a sheet last year and now, I pretty much use them exclusively for cleaning up everything from the counter to my 9 month old. We still have a roll of recycled paper towels and I expect that to continue until I can get Spouse on board 100%. I have a bin for the dirty rags, dish towels and bibs. When I run out of bibs and rags (usually around the same time), I wash.
I made the switch to paper-less cleaning over a year ago (luckily the spouse "got it" at the same time). I like the idea of the rag bag. Though, for dirties, I think a breathable mesh-type bag would be better. It shouldn't take up valuable real estate, but it should be accessible, so perhaps a bag on a hook in an area under the sink...