You should dedicate a single drive to TM. It is not advisable to use the same drive for TM Backups and any kind of "live data" at the same time. That is not an effective backup strategy, and, based on my own observations, TM prefers to have a drive all to itself.
@neuroanatomist has described what is considered minimum best practice for backups .. 3-2-1 ... 3 copies - (1) your original data, (2) two backups, one of which is kept offsite.
IMHO you can never have too many backups. In my own case I keep 1 "everyday" backup plus 4 sets of periodic backups, all on independent drives -
1 "everyday" backup drive, always connected, with 2x daily automated backups of critical data.
2 monthly backup sets, alternating backups, one set updated each month
2 offsite backup sets, alternating backups, one set updated every 6 months
Full disclosure ... I don't use TM.