Can Time Machine be setup to back up only one folder? I am beginning to make a project on my Mac, let's call it MyProject, and it's the only thing on this computer that is worth backing up.

Therefore, I will only need Time Machine to back up just the folder of my project (and everything that is on that folder including any subfolders).

(as an irrelevant note, back up devices will include encrypted thumb drives)

tl;dr:
So here goes my question, let's say that I need Time Machine to backup everything on /users/MyName/MyProject and nothing else, how can I get it to do that?
Unfortunately not. However, you can exclude individual folders from Time Machine.

HT1427 Mac Basics: Time Machine:


  Selecting items to exclude from the backup
  
  In Time Machine preferences you can click the Options button to adjust settings. A sheet similar to this appears when you click Options: 
  
  


It may be possible using the command line utility tmutil however