Your hardware, your software (and probably your music collection) can all be replaced at an acceptable cost. Technology really isn't all that expensive. On the other hand, your personal data is not replaceable. Your photos, documents, tax information, videos, and anything else that you have created is not replaceable.
Option 1: Cloud-Based Backup
This option is less cumbersome and allows for your data to be safe in the event of theft, fire, or other disaster (possibly even a ransomware attack).
The drawbacks of cloud-based backup methods (e.g., Carbonite, Mozy, Backblaze) are:
-Backups/restores are slower, so if you have a large amount of data that changes regularly, the cloud-based backup option may not be for you, or it may be a 'backup to another backup.'
Option 2: Local Backup
This option is the one we recommend between the two, but only if you have a Macintosh. You can use an external hard drive or a large flash drive, depending on how much data you are backing up. Since local storage is upwards of a million times faster than online storage, this method doesn't balk at large files like cloud-based backups can.
Why the caveat regarding using local backups with PCs? Because consumer-grade backup software that works with PCs tends to just stop working, without warning. I wish this weren't the case, but local backups on PCs are just not a sure thing.