In order to reduce the file size of your images, you'll need to reduce the quality of the images, called optimising.
What does that mean? Well, imagine an image as being a massive grid made up of thousands of coloured dots. Each dot resembles a certain colour — placed next to each other, all the coloured dots together form an image.
Optimising basically takes a number of similar coloured dots whose shade only differs slightly and replaces them with one coloured dot that has the "average" colour shade.
So, for example, instead of having 500 shades of red dots, you'll have a hundred, e.g. if an image originally had say a million colours, after optimisation it will have only 200 000 (depending on the amount of optimisation), which translates into a significantly smaller file size (less information).
To optimise a photo, however, you'll need a photo editing application. Fortunately you won't have to spend thousands of rands on this, as there are quite a number of free applications available on the Internet.
Have a look at About.com's suggestions of eight killer photo-editing applications. I've personally tried out the Serif PhotoPlus 6 one and it really works well. To use it, however, you need to register it online, but the process is simple and it's free of charge. The only downside to it is that you'll receive some ads in the mail.
Personally I don't have a gripe about this, because you're getting a pretty powerful piece of software for free in exchange and you can unsubscribe from all the mails as you receive them. What I normally do is to create a web-based e-mail account, such as Gmail, and then use that for all my registration purposes. That way your personal e-mail account won't get targeted by unwanted ads.
Anyway, let's get back to reducing those pesky file sizes.
Reducing the file sizes of your photos is one thing, but you'll find that a manageable file size will not translate all that well with regards to photo quality (the less colours, the lower the quality). So I suggest you make the image itself smaller as well.
Using 'Serif PhotoPlus 6' then, you can reduce your photos' file sizes by following these instructions:
Of course, optimising an image is only one function in photo-editing. Explore the tutorials to really get to grips with what you can do with a photo.
Happy hunting!