Thanks Aleksei, but I am trying to understand it better. 
Okay, so when I back the wallet up with the Litecoin wallet, I get a "save as". Do I have to save it as "wallet.dat" so it replaces the original file. or can I call it something else like "newwallet.dat" as long as I save it to the same folder?
Okay, so when I back the wallet up with the Litecoin wallet, I get a "save as". Do I have to save it as "wallet.dat" so it replaces the original file. or can I call it something else like "newwallet.dat" as long as I save it to the same folder?
It's a backup of the original - so you don't want to overwrite the original. Add the word "backup" to the name or just add ".bak" to make it "wallet.dat.bak" .
After that you should encrypt the file. Then put the encrypted file in the backup location.