Looking for a good backup solution.
Backup is an interesting one. There are a few different ways you can back up your data and you should figure out which is the best for you.
The most basic kind of backup is to copy files manually to another drive. This is very simple to do, but can get pretty messy if you aren't constantly on top of it.
Similarly you can use a program to automate the backup to an external drive or something similar. This will simplify keeping track of your files including things like versioning and using file deltas.
Backing up to a drive you own provides the best security and more data backup options, but it will require to to keep you drives safe. Done this way you could backup your files several times very easily and even take drives offsite (if you have somewhere to put then like a safe-deposit box).
From the sounds of it offsite backup over the internet is pretty impractical for you, but I recommend offsite backup for any data that is actually important (such as a KeePass database, which also happens to be encrypted).
As for a solution, an external HDD sounds like a good idea to start with. You should buy one with enough space that you won't outgrow it anytime soon.
There is a plenty of software out there to do this kind of backup. Microsoft released one called SyncToy. The name is deceptively silly, the software is pretty capable. You could also look at FreeFileSync, a piece of open source file backup software that has more options such as backing up automatically when a drive is connected:
http://www.freefilesync.org/
As a whole solution this may be less convenient as you will still have to deal with drive failures through manual setup. A good solution for this would be to build a NAS with HDDs in RAID 1 then backup to that, but at that point you start talking about "real money".
Just FYI my current working "solution" is a Windows server running VirtualBox with a virtual Ubuntu installation running a Samba server. I then manually backup the virtual disk wholesale to a usually-disconnected external drive. An offsite backup could be implemented by uploading said virtual disk to a service like DropBox, but that means large uploads and having to trust the service with your unecrypted data. A portable HDD could also be used to take this virtual disk offsite whenever is pertinent.
I hope this helps somewhat, best of luck with your backup
Edit: Virtual disks can be encrypted, but this can be computationally expensive.
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