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Here's a really simple way to make 4 rags from one old t-shirt in 2 cuts.

All you need is:

An old t-shirt, or better yet a bunch of them
A sharp box knife (be careful, they can be dangerous)
A sold cutting board or workbench 

It's all spelled out in the video. 

They're handy to have around the garage for working on your bicycle, car and such. A great way to recycle old shirts.

Step 1: Fold in half like this

You should see one side of the shirt. The sleeves will be in the middle of the shirt, one on top and one underneath.
Thanks for posting @Dr.E3
Very easy to do. You can also do it with scissors.
all so clever
I will do it for myself:)

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