And, I buy napkins and embroidered linens, too. A damaged dresser scarf can be used to cover a lampshade as can pieces of crochet or a doily. And those older table centers--cloth in the middle with fancy lace or crochet--you can carefully cut away the center and drape all that fancy work over a small shade. I realized the good bits of very damaged embroideries, laces, crochet could become a white/ivory crazy quilt and I am building a collection, 25 cents at a time.
The good sections of pretty faded screen printed tablecloths I cut bigger than kitchen towels and hem to use as covers for bread or rolls.
My DS and DDIL are thrifty, too. I folded and stitched a green linen scarf, embroidered "Napkins" on it and filled it with a pile of--what else?--napkins of linen, damask, cotton, terry, plain and fancy. Napkins are a waste to wash a few at a time but now they can have fresh ones for days and can wash a bunch efficiently.
This thread has grown so I don't think I've read all the posts. Has anyone mentioned rags? Icky-looking fleece garments and throws can be cut into rectangles to use instead of Swiffer refills. They can be used and tossed or shaken out and laundered. Cotton goods too far gone for other purposes can be cut and used as dusters, pet mistake dabbers, scrubbers, window washers, furniture polishers, etc. If you take the time to hem them they also can be washed. Old cotton's about lint-free.
I've been making woven potholders since second grade but the loopers are expensive, now. I've found orphan socks can be cut into rings and woven on the looper loom.
I have also spiral-cut T-shirts and woven them. Other folks do that same spiral cut (like cutting bias strips from a tube) and crochet with the resulting 'yarn'. Makes great tomato ties--soft and a bit stretchy.