The quotation by William Shakespeare that you are referring to was found in the play As You like it. It is based on an old military saying. "Bag and baggage" meant both men and their personal and/or military materials.  It was used in the context of armies being able to retreat with some semblance of order, without leaving their goodies behind for the enemy to use or loot.

Shakespeare uses it like this:

"Let us make an honorable retreat, though not with bag and baggage, yet with scrip and scrippage."

"Scrip" is another word for what we would call paper money, or maybe even checks.  The idea here is that they would be retreating honorably, and though leaving their stuff behind, they would be bringing their cash.