H.W.
When I was pregnant, I sewed up a bunch of cotton wipers, about 30 of them or so. They're little squares of about 5"x6" or so. The fabric was leftover diaper flannel from a pillow project and probably cost me 4-5 dollars. I used these for little wipe-ups when my son was a baby, and now use them as "wipers" at my preschool, so each child gets a fresh one each time they wash their hands. They're just as sanitary as paper towels and take up virtually no room in the laundry, so I pay very little to wash them.
I also bought some new terrycloth washcloths at the goodwill about 5 years ago or more. 2 bags of these cost us $6 total. We use these for everything, and toss them in the wash too.
We still have paper towels, but I try to limit this to truly gross stuff that I don't want to touch again. I have to admit-- I fold a lot of towels and shake out a lot of wipers from the washer to the dryer, but I don't mind. And the wipers can be used for runny noses too. If you want simple directions for this, just PM me. They're easy to make.
H.