I crochet afghans for a charity so I have lots of yarn on hand. I sometimes end up with short end pieces of yarn and use to throw them away. Now I save them, join them together and end up with my own variegated yarn. No waste now for what I once considered throw aways. Most of my afghans are granny squares so it works great color-wise.
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If you haven't already, check into log-cabin knitting. You knit rectangles and join them together. It's a great way to use up smidgens of yarn. I found the pattern in "Mason-Dixon Knitting."
Sometimes I'll join two strands of different yarn together to create a unique look.
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