Do I have to back up files before downloading OS X Lion?

Hi Guys im really need some quick advice.
Im looking to upgrade from snow leopard to OS X Lion, do i need to back up my hard drive before doing so? I've just started up as a freelance graphic designer and i've not yet got all my files backed up and im worrie dif i download Lion it'll wipe my file and documents out.
I've got a feeling it's going to be as simple as downloading an app right?? But i just want to make sure. My terabyte hard drive pack in last year and i've yet to by a new one due to lack of funding!! So im really really paranoid about doing this.
Is anyone able to advise me on if i should do this or not?? Im desperate for Lion and even more so Mountain Lion when it's launched this year.
Thank you so much guys, sorry if i sound like a complete newbie and a novice, im just paranoid!

MissMaccabee wrote:
Also can any one reccomend a good desktop hard drive? Preferably 750-terabyte.
I hope meant 750 gigabyte and not 750terabyte.  750terrabyte
would be a small server farm!
Anyway, for external drives, I personally use devices
from Seagate, Iomega, and G-drive.  All of them have seemed
very reliable for backup and just external storage.  Avoid
Western Digital products.  I have always had very bad luck
with them and avoid their products like the plague.
I currently have a pair of 2TB Seagate GoFlex desktop
drives for media and media backup connected to my
Airport Extreme and they have been performing without
issue.
If you are depending on your computer for business, it is
IMPERATIVE to have a clone back up of your system.
It is the price of of a computer based business and
the cost down the road will be much higher than the cost
of the drive if something goes wrong and you can't get
back up and running immediately. 
Remember, one of the articles of Murphy's Law states
that things will fail at the worst possible time.

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