When you reach the limit of free storage for your Google Account (i.e., 1GB for Picasa Web Albums, 2.8GB for Gmail) don’t get panic, don’t start deleting your mails/images and other attachments!
There is simple way to overcome this problem by buying some storage. As Googles Official Blog, plan starts at $20/year for 6GB (yes, $5 cheaper than before), with larger plans ranging up to 250GB. (Click here to see all plans)
Also you can check current space usage across all Google Services for your Google Account at one place!
Whats surprising me is the exclusion of service like Google Pages which is quite popular among not-so-geek users and hosting many small websites! Strangely Google have storage upgradation plans for services having 1GB (Picasa) and 2.8GB (Gmail) but no donuts for 100MB service which is Google Pages! :O