BDSolomon,
I recommend that you read Woody Leonard's site here.
Woody has categorized Windows users into three groups:
Group A: those that install everything that Windows Update offers each month. This includes the monthly rollup with all of its potential telemetry (rollup is obtainable from Windows Update).
Group B: those that do NOT install the monthly Rollup, but instead install the monthly Security Only updates for Windows and IE11 (obtainable only from the catalog). Also some misc updates from Windows Update (such as the .NET updates, Office updates) are installed.
Group W: those that do not install any updates. Not a very good choice considering the malware that has recently been found to take advantage of several vulnerabilities in Windows.
Here is an article by Woody about these three groups.
I choose to be in Group B.
Each month (after Woody's DEFCON system has declared that it is all clear to install updates, see the article on Woody's DEFCON system here), I go to this page, scroll down to the Windows Version I use (Windows 7 or Windows 8.1), scroll to the month/year of the given version's Security Only updates I want to install, and download the appropriate (32-bit or 64-bit) version of the Windows and IE updates (doing this is much easier than trying to find the appropriate updates in the Windows Catalog).
Once I have downloaded the two Security Only updates (Windows and IE), I install each one. Then, I go to the Windows Update applett in control panel and I change my Windows Update setting from "Never check for updates" to "Check but let me choose whether to download and install". Then Windows Update will check for updates. and update its list of available updates.
Each month, when Woody issues the DEFCON 3 state, he also reviews the updates and describes which ones are ok for Group B users to install and which ones to bypass. I usually follow Woody's advice and only check/install those updates (in the Windows Update list) that Woody recommends. NOTE: I DO NOT install the monthly rollup update that is found in the Windows Update list (because I have already installed the monthly Security Only updates for Windows and IE). The updates (in the Windows Update list) that I usually install are those for .NET, Office, etc. The main point here is that as a Group B user, I DO NOT want (and do not install) the monthly rollup update found in the Windows Update list.
After I have installed the specific updates (from the Windows Update list) that I want, I change my Windows Update setting back to NEVER.
Of course, this does not guarantee that my computers are totally free from Microsoft's collection of telemetry .... Microsoft could always include telemetry collection as part of their Security Only updates.
To cut down on the telemetry sent to Microsoft, I have disabled the Customer Experience Improvement Program (CEIP) in Windows and Office (and disabled the corresponding Scheduled Tasks) ... along with a few other hacks.
As I mentioned, the above does not guarantee that all telemetry is eliminated, but it's "90% effective with 10% effort".