You can use this Save For Web feature in Photoshop to optimize your images.

When you're ready to save an optimized version of your image
go to File-->Save for Web

 

You can use 2-up or 4-up to compare different compression settings. Here we have:

Original Image: 198k
Low JPEG (quality 5) 6.673k
GIF (256 colors) 40.08k
Medium JPEG (quality 50) 17.98k

Select one of these 4 previews and it will have a black box around it. The settings on the right correspond to the image that is selected.

In this case, the lowest file size is the 6.673k JPEG image, but it is too blurry to use.

Notice that the GIF image's file size is twice as big as the JPEG image next to it (bottom right)

In this situation, the best choice is the 17.98k JPEG. It is the lowest file size of an acceptable quality image.

Never have an image over 30k!
Always save a copy of the original, in case you need to edit your image, or later decide to compress it differently.