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What is the best way to backup my data, on my computer. I would like to backup, my contacts, and my apps if possible.

Your contacts should already be backed up if they are Gmail contacts.

For apps, there are many apps which can do this.

Astro file manager, MybackupPro(might be the best one, but it's $4.99), and there might be a few others out there.

Keep in mind, paid apps will always be saved to your google account. So if you get a new phone, just open up the market, and they will be in Downloads, ready to be downloaded.
 
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