For paper products that you can't replace w/cloth due to the laundry expense, buy recycled unbleached versions in bulk. You may be able to get a deal on a case from your local store (esp. if it's a co-op) but if not,
buy online. You can stash a case of toilet paper in a closet, under a table, etc. Not only do you save money by buying in bulk, but you don't have to worry about running out for a LONG time!

Remember that for some cloth products, you will not use as many as you would of the paper version. Handkerchiefs are a good example: When my nose is extremely runny, a tissue is good for ONE nose-blowing (and often not even that!), but I can blow my nose at least 3 times into a flannel hanky before it has no dry spots. For routine healthy nose-wiping, the same spots on a hanky can be used over again after they've dried, whereas a tissue gets much too gross and falls apart. And hankies are so small that you won't notice the addition to your laundry.
My other suggestion for your makeover is to walk around your house looking for ways you are wasting resources. What's in your trash--could you reduce the amount of it that you use, replace it w/something durable, recycle it, or use each one more than once? Do you really need so many lights on? Could you wash dishes in a way that uses less water and soap (hints: Soak! Do not leave water running!)? Could you line-dry your laundry?
See
The Evolution of an Environmentalist for ideas on how to make a gradual transition.