i just store my yarn balls in a baggie and put them on the hook and secure with the bait loop, just like eggs. if you do it right they don't fall off.
for rags, i like to make a loop out of fishing line and tie both the ends to a snap swivel. then i thread the loop through the rags with a needle, and secure it with the snap(it looks like a bracelet when you do this). when you need to tie up a leader, undo the snap, slide the end of your leader through the loop and pull a rag on to your leader. this way, i can keep all my leaders in wallets where they don't take up much space, and don't have to hassle with carrying a big pointy needle in my fishing gear...or have to worry about dropping it in the river when i'm using it.
