If you get 3 Rusty Iron daggers, make sure all three of them have the same health.

Then go to the shrine of Peryite (works anywhere). Peryite's followers will be unconscious.

Equip the first Rusty Iron Dagger and attack the followers (try to get them so they wont move backwards, between rocks or something).

Once your first Rusty Iron Dagger's health goes to 0 don't repair it.

Now equip the next Rusty iron dagger and attack the followers.

Now when the dagger runs out of health, just go back to your bag and you will still have 2 Rusty Iron Daggers.

You never run out! So no repair bills or wasting Hammers.