I do the same, but probably leave a little more than 1/4 inch. Having the template is a big help. My scrap pile from paper piecing is very small.

Depending on the size of the waste you can use it for pillows like Nammie to 7 suggested, or possibly on an applique or for that small corner or even a crazy quilt for a doll bed.

I took a NY Beauty class from Linda Hahn, and she also has a miniature NYB pattern that you could use all the scraps for- it was a brilliant idea!

Carol Doak's has a YouTube video you can watch that gives lots of tips on pp. You should check it out. You might waste less if you watch it. I love to pp after watching her DVD that auntiepigglyn sent me. The YouTube video is almost identical to the DVD. She has some cool tricks. I don't waste too much fabric now that I found Carol Doak's DVD (YouTube video).

There is some wastage but the results are worth it. How else can you get such neat points and do such intricate designs. Save your pieces in a pile of that color and watch for a place you can use them smaller pieces. Also using an add a 1/4 inch ruler will help save fabric. This ruler is really a must for paper piecers. I would not be without one. I do a lot of paper piecing and the small amount of wastage is worth the results.

FPP gives me an excuse to use a lot of little scraps that I might not otherwise use, so I don't consider it wasteful. However, I recently discovered the Cynthia England method of piecing with freezer paper templates that are ironed on. You can see where your seam allowance will be and it prevents a lot of the errors or extravagant cuts that I typically make with the foundation method of paper piecing (and there's no tearing off paper!). She has a video on her site demonstrating her method. http://englanddesign.com/content/video-demos-0 You can use it with any foundation pattern, I think, but it's probably best to experiment with a practice block of the type you plan to use in your quilt.

This is a LOT of extra work, but I just make pattern pieces of each shape, at a quarter inch all around and cut it out as if I were doing regular piecing. That also helps me when I add on the next piece, since I can use the quarter inch outside the seam to line up my next piece. Just remember to cut your fabric in the reverse, so when you place it on the paper and flip it over to sew it, everything lines up.

I learned how to PP from a book by Valori Wells, "Radiant New York Beauties". She uses a strip of fabric, cut the width needed to span the shape. I then add 5/8" to that width for seam allow. If the fabric doesn't have a directional print you can save fabric by using both ends. To measure so you know how wide to cut, you just use your pattern and find piece # 1. Place your ruler perpendicular to the seam line between piece # 1 & 2. Measure across until you get to the farthest edge, then add 5/8" to that. Repeat for each piece. I cut strips for as many as I think I'll need by adding up the lengths of the pattern shapes, adding some inches for waste, then divide that into the width of my fabric, so I know how many strips to cut, I round up if there's a fraction. I label my strips with the pattern # on a little piece of paper either pinned on or use a small paper clamp. I draw an "X" on the wrong side with a fabric marker on one end, if it's hard to tell the right from the wrong side. Then when you start PP, I just remove one strip at a time. You might have several strips attached until you trim after sewing and pressing. You also might have several strips of the same fabric but cut different widths. As long as you label them, you should be fine. I've always used this strip method and you will always have enough fabric to cover, because you don't cut the fabric off until after you've sewn the seam. I also will cut a small piece of each fabric and glue it to a copy of the pattern. This ensures I'll take the correct fabric for that section. I also use the Add-A-Quarter ruler which makes trimming so easy and accurate.