There ARE potentially ways to circumvent massive data collection, as far as what goes in and out of your internet pipe, but it requires you to be more geeky than normal.
TOR is a useful tool but not a silver bullet, nor is encryption. Good encryption has the keys exchanged securely (Sneakernet, or nothing at all!), and changed often. (Once a month at the latest.) It uses good keys, generated without compromised algorithms, made with good entropy sources, and as deep a key depth as possible.
I use encrypted email with my friend, simply to waste the NSA's time. If they want to invest the time to keep breaking my encryption just so they can see me and my friend discuss comic books and space news, that's on them. (In fact, the more people do that, the less profitable mass collection and automated processing will be! So, Join the Enigmail fan club! Just dont use a public key server, that's a point of potential compromise. Manage your keys yourself. OFFLINE.)
Dont use social networking! DONT DO IT! JUST DONT!
In terms of using TOR, it is usually possible these days to run something like OpenWRT on your router. This is just plain good medicine, as many routers these days have NSA and corporate backdoors baked into the shitty firmware they are running. OpenWRT is fully FOSS, and you can audit the code if you want, and build from source if you want. (Building from source is actually recommended! It lets you turn on special features specific to your hardware, and potential use case!)
One of the packages for OpenWRT is-- Dun dun DUNNN... A Tor exit node network virtual interface driver! You can load that sucker on your router, configure your routing table security to route certain kinds of data through that interface, and BAM-- You can have all HTTP traffic on your network go in and out through TOR, if that is your perogative. Just use TOR correctly. (No, that really isn't using it correctly, but you CAN set up some pretty kick ass configurations this way. You can also set up your own encrypted VPN tunnel interface, and quite a few other fancy things. Consumer router hardware crap (that is compatible) is all you need. See the hardware support list! I have TWO such routers that I have kicking around that I use for funtime hobby projects. One has a permanent serial header attached to the diagnostic serial port baked onto the motherboard, which I can use to do all kinds of fun things. Routers are pretty powerful little general purpose whizzbangs these days.)
If you are super paranoid, use an encrypted filesystem on a live disk USB key install of Linux. For bonus cred,
use one that self destructs. Basically, in order to be secure these days, you HAVE to take matters into your own hands, and you HAVE to be a stickler about it. You CANT trust consumer gear firmware-- You cannot trust it AT ALL. You HAVE to replace it with something that you have full, complete, inexorable control over, and then you have to properly partition and secure your network infrastructure.
You CAN do this. It really isn't that hard. The deal is that you have to go off the sauce that is social networking. Screw Facebook and pals-- Talk to Grandma using postal mail. It has more federal protections than anything digital does.