Really, the best solution is going to be an external hard drive -- actually, two, one for your long-term library and one as a backup drive.
The only option for a smaller Raw file is to convert CR2s to DNG files. They have a smaller file size but still are Raw files.
A PSD can be in either 16-bit or 8-bits per channel. The 8 bits will give you significantly smaller files, however you want to ensure that you have gotten the most out of your Raw processing before converting to 8 bits. If you do a lot of processing colors and tones in Photoshop, then keeping the files in 16 bits will be valuable.
But those are pretty short-term considerations for active photographers. Built-in hard drives fill up, and that's especially true for laptops. Check out external hard drives and you will see that very high-capacity drives have become quite "inexpensive". Of course, spending a bit more than $100 on a two-terabyte hard drive doesn't sound "cheap", but the expense is well worth it.