When I sent it off to repair they asked me if I had backed it on a hard drive. What should I get for a hard drive?
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A simple $60 hard drive from Amazon is really all you need. You can get a Seagate 2TB for about that. They’re great.

and does each computer need their own hard drive?
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No but humans are lazy and we tend to forget to use drives when sharing between computers so in the long run, each having its own drive is better.