Anything under a fat quarter and over a 5" square, I fold and put together in one drawer. If it's just over 5" square, I go ahead and cut and I have a stack of 5" squares. I recently made a large disappearing 9 patch with just my 5" squares. Fabric under 5", I place in plastic drawers by color. They come in handy for applique. Small strips of 2" or less, I am crocheting into a rag rug. If it's less than 2" square, I usually toss unless it's green. They make nice leaves for applique. Hope this helps. What to do with scraps is one of the harder things to figure out.