This post makes me recall my pain once with Telit GM862-GPS modules. My code was exactly at the point that the number of variables, strings, etc added up to the limit. Of course, I didn't know this fact by then. I added one innocent line and my program did not work any more. I drove me really crazy for two days until I look at the datasheet to find this fact.
What you are looking for might not have a good answer because the Python interpreter is not a full fledged version. What I did was to use the same local variable names as many as possible. Also I deleted doc strings for functions (those count too) and replace with #comments.
In the end, I want to say that this module is good for small applications. The python interpreter does not support threads or interrupts so your program must be a super loop. When your application gets bigger, each iteration will take longer. Eventually, you might want to switch to a faster platform.