In my personal view, two copies (the boot drive plus a Time Machine backup to an external drive) is sufficient coverage for most consumers, ie people who not on their machine all day every day. I usually suggest people get an external drive that is up to 2x larger than the capacity of the drive they are backing up, but over the years I've realized that the average user never fills their drive to even half capacity, so I've gone back to suggesting a same-capacity external drive for "light duty" users.
For those who rely on their computer very heavily, I suggest a second external drive with a "bootable clone" that is made by using ChronoSync, SuperDuper or Carbon Copy Cloner (your choice, they all cost about the same and clone equally well). This would be entirely separate from the Time Machine backup, and done less frequently (weekly is a good habit). All these systems can be set up to happen automatically so that you have very little to do after the initial setup.
For the most precious or hard-to-replace things (tax returns, family photos, stuff like that), I'd further suggest an off-site backup of some kind (data that falls into this category is usually a tiny fraction of the total hard drive). Cloud backups work fine for this sort of thing, or you can make a DVD or CD of the data and put it somewhere safe away from your home, or with a relative or friend, etc. Whatever works best for you, but it should be done.