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Time Machine is Apple built-in backup solution for macOS that automatically creates incremental backups of your entire Mac, allowing you to restore individual files or your complete system to any previous state.
Time Machine automatically backs up your Mac hourly for the past 24 hours, daily for the past month, and weekly for older backups. It uses incremental backups, only saving changes since the last backup to save space.
You need an external storage device like a USB drive, Thunderbolt drive, network-attached storage (NAS), or Apple Time Capsule. The drive should ideally be 2-3 times the size of your Mac storage.
Yes, Time Machine is included free with every Mac as part of macOS. You only need to provide your own backup storage device to start using it.
Source: support.apple.com