In my airing/linen cupboard I like to roll up my towels into little sausages! Fold them in half and then again, then roll them up and stack on top of each other. This makes finding a towel very easy and your cupboard tends to stay neat. Also, I keep my spare bars of soap in between them. Dry soap lasts longer, keeps moths away, and smells nice!
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I bought extra large safety pins and pinned the hand towels on the towel bar. This way when younger ones dry their hands the towel doesn't end up in the floor.
After having all the towels end up in the same bathroom, leaving other bathrooms in the house with no towels, I came up with this solution. We have 4 bathrooms in the house, and 1 in the RV. All get regular use in this large family.
For general cleaning, I use worn out kitchen towels. They are great for dusting, getting into corners, and behind the faucets in kitchen and bathroom.