Consider looking into SyncBack. It is very easy to use. You specify the directories that you want backed up and it copies over the files to whatever destination you specify. I use another separate hard drive. I don't think the free version compresses the backed up files though.

This isn't a one size fits all solution. I'm very curious to see what others use for their backup solutions.

I wouldn't recommend using the built in windows backup software or anything from Symantec. I prefer using low-profile programs that are reliable and do exactly what they are designed to do. Symantec's stuff uses a ton of system resources, has tons of bugs, has horrible support, and is expensive so IMHO it isn't worth using.