Backup is a term applied to many things.
You can use file syncronizing backup tools which create copies automatically based on rules or a complete system image which can be used to restore your entire OS, programs and files in case of a more irksome disaster.
Here's how to use Windows XP backup
Vista Backup & restore and Windows 7
How much room any of this requires depends on the size of the data being backed up or the size of the entire partition you are creating a backup image of.
Rather like that how-long-is-a-piece-of-string question
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