Using Git to track server configuration

I am wondering if I can use Git to maintain server configuration for Ubuntu? If so, which directories would make sense to track? My fear as a newbie is that I will make a change in server configuration that breaks everything and not have an easy way to undo. I realize that we can create images/backups of our droplets but I may want a slightly more granular approach.

Also, if this even makes sense, what security implications might it have? Last, I am not talking about setting up Git to track my sites, this is a given, I am particularly interested in the actual server and its configuration and tracking its changes.

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It makes sense to track changes using Git as long as you are tracking configuration files. I will suggest tracking the /etc directory. There is also a program called etckeeper that you can use the automate the process but etckeeper can only be used on the /etc directory.

Something to keep in mind is that OS will also change configuration files, for example on upgrades.