I'm a big fan of backing things up. I keep my important school essays and such in a folder of my Dropbox. I make sure that all of my photos are duplicated to an external drive. I have a home server where I keep important files mirrored across two drives inside the server (like a software RAID 1).

So for my code, I have always used Subversion to back it up. I keep the trunk folder with a stable copy of my application, but then I create a branch named with my username, and inside there is my working copy. I make very few changes between commits to that branch, with the understanding that the code in there is my backup.

Now I'm looking into Mercurial, and I must admit I haven't truly used it yet so I may have this all wrong. But it seems to me that you have a server-side repository, and then you clone it to a working directory in the form of a local repository. Then as you work on something, you make commits to that local repository, and when things are in a state to be shared with others, you hg push to the parent repository on the server.

Between pushes of stable, tested, bug-free code, where is the backup?

After doing some thinking, I've come to the conclusion that it is not meant for backup purposes and it assumes you've handled that on your own. I guess I need to keep my Mercurial local repositories in my dropbox or some other backed-up location, since my in-progress code is not pushed to the server.

Is this pretty much it, or have I missed something? If you use Mercurial, how do you backup your local repositories? If you had turned on your computer this morning and your hard drive went up in flames (or, more likely, the read head went bad, or the OS corrupted itself, ...), what would be lost? If you spent the past week developing a module, writing test cases for it, documenting and commenting it, and then a virus wipes your local repository away, isn't that the only copy?

So then on the flip side, do you create a remote repository for every local repository and push to it all the time?

How do you find a balance? How do you ensure your code is backed up? Where is the line between using Mercurial as backup, and using a local filesystem backup utility to keep your local repositories safe?