The best is to use an external disk to store the images. They are quite big - about 55% of the amount of data you image (due to compression they are smaller). So they may range from 10GB to 40GB to even more depending on how much you have on the partition you image.
I always recommend an external disk of at least 250GB for the purpose because you want to image frequently and keep at least 3 images (grandmother, mother child). You also want to image your 100MB active partition and your recovery partition once - just in case your HDD dies.
Another advice: setup a seperate data partition for your data. That will insulate your data from your OS. It is also handy because imaging the system and the data need not occur at the same time. You do that depending on the change frequency.
Data Partition
The imaging frequency is a matter of personal preference. I used to do that daily, but I think once per week will usually suffice (depends how much of the latest updates you are willing to loose). Here are some thoughts on that:
Imaging strategies