Are you going to make it raggedy on both sides? I am in the process of making a rag quilt but I have made a few rag purses and a diaper bag. I do not want the inside to be raggedy on the purses so I sew the squares for the front together and then cut out the same size piece of material for the inside and then quilt them together. I find this saves a lot of time. If you did want both sides raggedy could you sew two exactly same size sides and then put them together and then quilt them instead of quilting each square before sewing it? I don't even know if that would work. I know I haven't answered your question but I hopefully maybe gave an idea. LOL