Myself and many others on here have upgraded the OS and it does not erase your data. You can do a quick search to confirm what I am saying if it makes you feel better, but I'm not making this up.
The only reason I encourage a backup to be safe is prior to the install the installer does an aggressive scan on the disk and then the install itself results in a lot of write activity to the disk.... so if you have a drive that may be on its last legs, the strain of an OS install can push it off the cliff.
If is pretty easy. When the screen comes up you will be asked for your wifi password, then the recovery module is downloaded and displayed. When that comes up just click install OS. Then have a beer while the 4.7GB OS install is downloaded from Apple's servers and installs.