To me it all comes down to categorising the data. Some things need backing up daily, others weekly, monthly, annually and others once and never again. Also some things never need backing up.
My first step with backup is to categorise the data when it is stored, then use the right backup strategy. If you don't sort the data properly you end up wasting money backing up stuff that isn't important, and may even miss things that are important.
My servers are based at home, close to the desktop/laptop machines, so though I have RAID for important data, everything is vulnerable to fire/flood/theft etc...
However, I do have a co-located server based 300 miles away to run several websites I look after. When I looked for the hosting provider I factored in the price for extra storage, and then ordered the server with a fair chunk of extra space than I will ever need for the web servers. I now use the colocated server as a rsync destination - no private data (in case it is compromised), but it makes me feel better that me and my family survive a house fire, the family pictures will too.