The Setup Wizard consists of 3 steps depending on your version:
Select Backup Drive: A list of backup destinations with recommendations on where to backup. It is recommended to backup to an external drive with efficient amount of free space for more reliability.
Select Data: Keep the preselected data or select the data you wish to protect, the most important selections will be viewed in the first tab "Smart Selection" and further selections are accessed from the "My Computer" tab.
Set Backup Options: Specify to compress and/or encrypt the data and set the encryption password.
Notes
Security, compression, and backup drives will not change unless the backup job resets; by closing the existing backup and start a new full backup.
The encryption password is case sensitive and should be provided "AS IS", if you lose or forget the password your encrypted data will be irretrievable.