As you probably already know, Time Capsule is Apple’s wireless backup device. Using Time Machine on OS X, you can set up your Mac to back up itself automatically to Time Capsule. Once your files are backed up to Time Capsule, you can browse the backups, do restores, and look at and restore file versions from specific point in time.
This is a very neat and easy to use solution for Mac backups, however Time Capsule is not cheap, with prices starting from 349 AUD. However, you can set up one for free inside a virtual machine using VirtualBox. All you need is a spare PC on which to set up the virtual machine.
Guys at SmallNetBuilder have written an excellent step by step guide on how to setup the VM. If you don’t feel like creating everything from scratch yourself, they also provide a download of a virtual appliance, with everything already setup.
I’ve been using this home brew Time Capsule for some time now, and it works great. Now there are no excuses not to backup your Mac.