Microsoft changed the way this works in Windows 8 and 8.1. RELATED: 8 Backup Tools Explained for Windows 7 and 8
This means that you should be able to restore previous versions of some files without configuring anything - System Restore will be there for you - but it’ll certainly work better if you also enable Windows Backup. These older versions of files come both from backups created with Windows Backup (if you use that backup system) and the automatic System Restore feature.
You’ll see any available previous versions. Just locate a file in Windows Explorer, right-click it, select Properties, and click the Previous Versions tab. On Windows 7, the Previous Versions feature allows you to restore older versions of your existing files. RELATED: Use Windows 7’s Previous Versions to Go Back in Time and Save Your Files
