I found that in the course of any project that I often had lots of rags sitting around. I would gather them up and put them in a few piles here and there, but it always seemed to be a mess. Since good rags are often in short supply, if you are like me, their use slowly gravitates from use on something reasonably clean to progressively dirtier jobs before they finally go in the trash. I found a solution to my problem. I purchased a couple of wire bicycle baskets. They are really cheap. The one shown here is a nice size, not too big and not too small. In my case I just used the attached brackets and hung them on my sheetmetal brake, but you can mount them in any handy spot. Anyway, my shop looks better without the partially used rags scattered about.
http://www.ebay.com/itm/Portable-La...ruiser-Bicycle-Bike/391571543598?_trksid=p204
http://www.ebay.com/itm/Portable-La...ruiser-Bicycle-Bike/391571543598?_trksid=p204