No matter how much you love your mobile device, saving valuable information there and nowhere else, is always a bad idea. This applies especially to contacts.
As with any cell, you should always have a backup for your iPhone contacts somewhere on your phone, just in case it is stolen, lost or damaged irreversibly.
What are the three ways that you can make a back up of your contacts from iPhone?
1. Auto sync using iTunes (OS 10.5.7 or higher for Mac): Every time you connect your iPhone to your computer via USB, sync, if established, via their iTunes preferences.
It is the easiest way to keep contacts from iPhone, video, music, bookmarks, notes, applications and much more.
2. Use MobileMe: A service (paid) offered by Apple. MobileMe does many things to sync your iPhone, Mac and PC.
The process also synchronize the contacts on all machines, which means you always have multiple copies of your address book.
3. Use Google Sync to synchronize your contacts, email and calendar between iPhone and Google Account.
Google keeps its data, making it more reliable to save copies on your hard drive, which is so vulnerable to accidents as the iPhone.
Preferably, look for options to back up your contacts not eliminate new or existing, while charging the oldest.
The contacts are something that can not afford to lose, so it more practical to retain the three backups.