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Read this http://www.43folders.com/2010/03…
It's actually harder than it should be because of the trade-offs of convenience versus thoroughness but if it's not a) automated, b) redundant, c) rotated offsite regularly then its not backup.
If you can afford it buy a 2-drive (or more) RAID NAS for your network. Backup to this. Clone it once a month to an external drive and keep the clone offsite, better keep 2 or more clone drives, rotate them.