Hi again,
lenny109,
Moltas provided the answer. I'll add a slightly technical desccription which won't be perfectly accurate but a give you a good idea without being too dense.
When a JPEG is saved, the image is first analyzed in 8 x8 pixel blocks. The upper left pixel is written in code while the rest of the block is written in a simpler code in relation to that reference pixel. This shrinks the file size. The greater the compression, the closer to the 'same as the upper left pixel' is how the file is written and the image becomes cruder as more data is thrown away. In it's worst case, which is never used, all 64 pixels in each 8 x 8 pixel block become the same. As soon as you can see the blocks of pixels in an image they are called artifacts. The fact of throwing away pixel data in the JPEG compression scheme makes the file smaller but because data is lost the technique is called lossy vs. a lossless file compression scheme in which no data is lost.
When you save a PSD file each and every pixel is written in the file, location, transparency, color. Each layer you add increases the file size, as does each channel and everything else needed to be written into the file. On top of that, there is now saved a composite image which is a flattened image. That boosts your file size tremendously but is necessary, we are told for old versions of Photoshop compatibility.
Actually it is necessary because .psd used to be Photoshop's proprietary file type. They allowed other applications to use their file type but most of them only can read flattened files, not the full .psd. In order for those applications to be able to read your .psd files, the flattened (composite) must be part of it.
Recently we had a fascinating (well to me it was

) discussion on saving your image files in .psd files vs. the .tif layered format which allows for one of two lossless compression schemes, LZW and ZIP. You might find it interesting.
http://photoshopgurus.com/forum/viewtopic.php?t=6632
I should add that you mentioned resaving your file as a JPEG. Generally that is a
bad idea. Each time you resave a file as a JPEG it degrades as more pixel data is thrown away. You should save your original JPEGs separately but when you are working on a file save it in the .psd format or .tif with layers, channels, etc. A TIF with LZW or ZIP compression will save the same data as a .psd file but will be considerably smaller than the .psd.
Cheers!