when i make my image smaller it becomes blurry

That’s usually caused by downscaling too aggressively. Try resizing in smaller steps and use a higher-quality resampling option like Bicubic Sharper. It also helps to keep the original file untouched and make the smaller version from that each time.

Very Helpful

This Problem also happened to me, please resolve it.

In our experience on this forum, and my own with camera club members entering digital images into club competitions, nothing seems to confuse people more than image size and PPI (Pixels Per Inch).  

You reduced your image from 3024 pixels wide to 612 pixels wide.  We don't know what Resample algorithm you used, (we'll come back to that later).

If we uncheck Resample, and change the Resolution to 300, it still has the same pixel size of 3024 X 816 and is still 34.9Mb, but the linear size has changed so if you were to print the image as it is now, it would produce a smaller print.

When you resample to change the pixel resolution you have a number of options. The default is Automatic  where Photoshop decides.  I suspect that is what yours was set to, and that Photoshop used Bicubic Sharper

I used Preserve Details 2.0 in the example below, and it gives a much better result.

This compares Preserve Details 2.0 on the left, and Bicubic Sharper on the right zoomed in to 400%

What do you think?

Are both versions JPEGs? JPEGs add compression. If you're compressing an already compressed image, then you could be introducing artifacts. You might try scaling down the original image and saving it as a PNG instead.