I trim left overs from squaring off fabric and triming down once the quilting is finished to 1 1/2" strips for log cabin and borders for mini wall hangings. I leave larger pieces 1/8 yd anything over 5" sq, if I think I can use if for applique.
I have a tote of 5" strips and squares, a draw of 2.5" strips and a bucket of scraps waiting to be cut down, but the I go through it and find something I can use in a current project (currently placemats).