I am suprised that no one has posted the fact that long/lat is a terrible way to store data on a sphere (someone did mention that longitude requires less precision near the poles).
Basically you can store data position as X and Y co-ords in meters. Imagine a cube around the earth that exactally fits (haha ok almost fits it). You only need store X and Y position, not all 3 co-ords, because the 3-rd co-ord can come from the redius of the earth, r = square root[x^2 + y^2 + z^2].
So convert your lat/long to x/y in meters. You will only need a total of 12756200m per co-ord (thats the diameters of the earth). So your total value will only have to span 0 to 25,512,400 (someone else claimed 40,000,000 because they were using long/lat) to be accurate to +/- 0.5m.
That will result in just 25 bits per position. If I were you I would just do accuracy to within 2m and use 24 bits per position, as that is a tidy 3 bytes.
Also if you are storing way-point information on a path, you can store each way-point as an offset from the last waypoint. Like start with a 24bit x/y co-ord. And then have a 16bit 'update' that adjusts the position by adding/subtracting x/y meters. 16bit would allow a waypoint update to be over 400m away. So if you know the device is not meant for planes and updates every so often, this might be acceptable too.