I have many pencils and so I decided to do something to keep them all displayed.
I wanted to do this the smallest possible because so they will fit anyways in my pencil case without occupy too much space.

It can be used for many other tools and craft too, you just need to adjust the small cuts size.

Step 1: WHAT YOU NEED

You need:
-leather or used inner tube;
-scissors.

Step 2: CUT

Cut a stripe of leather or inner tube.
Do it long enough for all your pencils.

Step 3: SMALL CUTS

Fold the leather or inner tube and make many small cut like in the drawing.
Two more external and two more internal, and so on. Where two cut end other two cut should start.

Step 4: HOW TO PLACE THE PENCILS

Place your pencils through the holes.
One up and one under the stripe, so they can stay really close together.

Step 5: CLOSING LACE

Make a long strip of leather or innertube.
Make an hole at the end of the pencils organizer, insert the stripe and make a knot.
Roll it around the pencils organizer.

Step 6: DONE

Done! They will be able to fit all in your pencils case, almost like if they were loose.