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Linux is no worse in that regard than any other OS, it just happens to be run, in the most part, by people who are more technically savvy and more likely to actually back up their data. Windows & Mac users should also back up their data. These "every 5 minutes" comments are coming from people who have an automated backup system that uses something like rsync to only back up files that have actually changed -- probably not something you care to set up.
As for methods and scope, it really depends on your risk tolerance. I can reinstall a computer fairly quickly and actually like a nice clean install now and then so I don't bother backing up config files in general (with a few exceptions). I back up the files that I care about which are mostly stored in a few locations, mostly in my /home/<twowheels> folder. If you're OK with cloud storage (which it seems that you are), it might be sufficient just to save anything that you really care about in a folder that's automatically synced to a cloud storage service, such as Dropbox, Copy.com, etc.
My answer would be (and is) different for mission critical servers at work.
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