I feel slightly stupid and at risk of losing valuable data now :-\
My reward - if i get good marks in my recent exams - is an external HDD. Until then it looks like I'll have to use the cloud.
By all means do keep your data backed up one way or another! If you can save some key files to optical media (like DVD-RW) or inexpensive flash drives. Do that first, because backing up to a "cloud" will take a long time. It took me about a month to get my first full backup of the 170GiB of files that I consider important enough to use
physical diversity backups for. Most people have more than a GiB or two of files, if you include stuff like music, photos and videos, that are irreplaceable and should be backed up not only to a separate drive, but to a separate location. So if, God forbid, your house burns down, you'll have your most treasured digital stuff. Or if you have a laptop, tablet or some other portable that can get stolen or damaged beyond repair, you'd want a copy of everything safe at home.
I keep my files synced between two computers at home, and back up to a remote computer that I have an account on, and a "cloud" service. I use the "free" music/photo/etc. file sharing services to share, but
not for backup! If you read the fine print, you'll find that what you get back from many of these "free" sites will not be the same quality as what you put in. Don't risk your valuable media files by using a "free" website alone!
I'm a TiVo user, and when I travel I save a bunch of my TiVo videos in unencrypted MPEG2 format to a 500GB portable USB drive and/or onto my laptop. That worked so well that I bought a larger 2TB USB drive that can hold all of my latest backups, and a whole lot of movies and TV shows. My mother is getting to the age that she's having falls and other problems, so if the phone rings, I can grab the big 2TB USB drive and just go, knowing that I have enough video to pass my time for quite a while.
Something that you might consider doing is getting an external drive
enclosure with a bare SATA HD instead of one of the pre-made USB drives with "no user serviceable parts inside". Doing it this way can save you some money, and gives you the ability to swap drives. So if you can only afford 1TB now, you can buy a larger drive for it later, and use the original HD to keep your most important files in a safe deposit box, for example.
This may seem to be a lot of work, but as more and more of our precious things become digital files, they should be protected with the same care that other possessions are kept.