I really keep almost everything. I spent 3 weeks sorting through my scraps and cutting them into blocks and strips a year ago. They are now all in bins or boxes, the leftovers, too small for a block are in "Strings" or "Crumbs" to be made into thread bowls or fabric. I also have a gallon jar that I stuff all my threads into to incorporate into thread bowls or add to the hand made fabric.
To make it into fabric squares to be used for applique, postcards or embellishment,
- use a layer of Solvy, sprinkle your crumbs or strings over the surface, covering every inch (you can add more if you need to).
-place a layer of black bridal tulle over it (this allows the colors to shine through)
-Pin with straight pins all around and inside (pull them out as you get to them)
-stitch around the edges to contain your little pieces, (I use up partially empty bobbins of thread and spools) and straight stitch the livin' daylights out of the thing. I go diagonally, use the back stitch to change directions.
-Rinse out in warm water and dry on a towel....Ready to use!
I then keep them in a little drawer in my sewing room labeled "Hand made fabric" and use them to make bowls, little treasure pouches for gifts, fabric postcards, applique, etc. I don't waste much of anything.