This is indeed a very simple and effective solution that I practice religiously! For example, I created a filemaker database named "accts" about 30 years ago to manage all my personal finances. I was using a PowerBook Duo 210 and Mac IIcx as my primary computers at the time! I simply append a number and increment it each time I make ANY change.
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Also do this with all my other important files, it's become second nature to me. I have folders named "old" wherever there are important files, and I just drag all these numbered copies there. Every so often, I do housecleaning and delete the older files.
This has really saved my butt more than once. But I also use Time Machine backups to a shared network volume, regular Carbon Copy backups to dedicated external SSD's and Backblaze. I started with an Apple ][ in 1978, got my first Mac in 1985. I still have files going back that far and wouldn't want to lose any of them.
🙂