The only paper product we use in our house is TP. Everything else is cloth. I have four children, and we are rarely sick.
I think there is a lot to be said about making your home too sterile. Now I'm not saying that we shouldn't use common sense, but do you really need a clean paper towel to dry your hands every time you wash them? Your hands are already clean, so there should be few germs to leave on the towel! We have different cloths for different tasks - handkerchiefs, napkins, kitchen towels, dish cloths, and hand towels in the bathroom. There is a definite argument to be made that by being so aggresive with every germ we encounter, we have made super, antibiotic-resistant bacteria. And oftentimes, those families with the most antiseptic households have the most illnesses. Our immune systems are built by regular exposure to normal, everyday germs. I don't think that we should go licking our bathroom fixtures or anything, but I don't own stock in Purell, either.
I haven't noticed any difference in our water bill - my cloth items just go in with the regular laundry. It would take a HECK of a lot of napkins to get to a full load of laundry. In our house, each person has his or her own napkin ring, each a different color. We each start with a fresh napkin at breakfast. If the napkin becomes soiled, it goes in the laundry hamper. If not, it's put in a napkin ring and used at the next meal. All napkins are put in the laundry hamper after dinner. Every morning, I put out fresh kitchen linen (napkins, towel, and dish cloth.) I'm sure that when they're washed, most germs are killed off either by the heat of the dryer or the bleaching power of the sun (when line-drying.) If I have something particularly icky to clean up (like the dog gets sick), I use a rag that can be thrown away. (I save holey socks, old t-shirts, ratty towels, etc, in the rag box.)
For cleaning, I have microfiber cloths that are dedicated to different purposes - green for dusting, yellow for windows & mirrors, and blue for the bathroom.
Again, I have not noticed a difference in my water bill. But I do know that I buy fewer trash bags. And I'm helping the environment, because I'm not throwing away single-use items that have to be manufactured, packaged, and transported from factory to warehouse to store to home to landfill.
Our great-grandmothers didn't have access to the same single-use items we have, and they didn't have nearly the allergy problems and superbugs (H1N1, avain flu, MRSA) that we do. They were just conscious of keeping kitchen and bed linens clean.
Okay, stepping off my soapbox, now. Give cloth a try! It really is cheaper!
