I struggled with this problem for quite sometime. Then I found the Creative Grids Scrap Crazy Template set. As soon as I am done with a project I cut up the scraps using these templates. I have 3 categories--patriotic----kids---floral. If it does not fit those---it gets tossed. I also save 2 1/2 in strips if they are at least half a width of fabric for scrappy binding. Here is a quilt made using those blocks. My sewing room is 8 x 8 so I cannot have containers full of things.