Just to add a few general thoughts to this thread. BTW my background was in large scale accounting software implementations.
Backing up and archiving files serve two different purposes. A backup gives you a second copy of a file should the original become lost / damaged in the future. An archive gives you a copy of a file at a given date / time should you find the original file has become damaged or lost during a period between the present and the archive date. Why? it is possible that corruption has occurred to a file and has not been noticed and it has been updated since. For example, you’ve just completed chapter 23 of your magnum opus and you realise chapters chapters 13 to 17 are missing from the file and from the backup. (Think of poor T.E.Lawrence of Arabia who left his draft copy of the Seven Pillars of Wisdom on a train and had to rewrite it without his notes as he’d destroyed those thinking he’d not need them any more!)
Large organisations will perform both archives and backups, with the backup media being recycled on a regular basis while the archive media is held for a year or more.
The next thought is the location of your backups. Having an external hard disk by your PC is fine if your PC fails but not much use if its stolen or destroyed in a fire alongside your PC. There are lots of options for cloud backups from people like Amazon, Microsoft and Norton, for example.
Being a retired accountant I do all of the above, external hard disks and multiple cloud backup regimes.
One last thing I would also recommend is periodically test restoring from you backups (to a different location) to ensure all is well. Also, store the installation files for your local backup software on external media so if you lose your PC you can install the software on a new machine to perform the restore of your backup files.