[dnanian]

Randall:

You can use FileVault if you want full security for your entire Home folder. Just recognize that, as explained in the User's Guide, you need to take steps to ensure you have a good backup.

Specifically, you should create a non-FileVault account. Log out of your FileVault account and into your non-FileVault account before you back up: this will ensure that the FileVault volume is put away cleanly.

It'll take longer than "normal" to back up, because any changes to your Home will always copy the entire FileVault image, but it will stay secure on both source and destination.

It's not so much that backups take more space will FileVault: they're less convenient and take longer to create.

In general, yes, I think FileVault is massive overkill. But, in that, it's also much more comprehensive than other methods of securing your Home...