I use MakeMKV to rip my blu-rays and DVDs to .mkv files. Works like a charm.
It's a 30 day trial, but the actual program is still in beta and as long as it stays that way the devs publicly post a new activation key every 2 months. So you can use it indefinitely (or at least until they release the full version, but I haven't seen that happen yet and I've been using MakeMKV for 5 years or so)
You can of course buy it already to support the devs.
I store all my rips in full quality, but then again I have a rather large NAS. If disk space is an issue, you may want to use Handbrake to reduce the resolution/quality/bitrate/whatever in order to shrink the file size.