If I update to OSx Mountain Lion, will I lose my data?

Hi. I have an Apple Macbook Pro, which is currently running Mac OS x 10.6.8. There's the next operating system for $20 on the App Store, which is 10.8.4. I want to update, but unfortunately my external hard drive is full with my dad's work stuff, which can't be deleted. I was wondering - is updating Mac Os the same as iPhone? Because if I go on iTunes and hit update my iphone, it will update it and I will keep everything. OR, is upgrading the Mac OS like restoring your phone, where it deletes everything and you start off fresh.

I don't have too much important stuff on my Mac, but I do have a lot of stuff. What I'm really looking to save is:
ALL applications and their data
iPhone backups
Songs on iTunes
Pictures
All folders in Finder

Thanks, I prefer someone who has updated Mac OS before via buying it off of the App Store.

No, you won't lose your data, I would like to suggest you to keep backup of your Mac before doing any updation. You can either create bootable clone or Image of your whole Mac and then proceed to next step.

First updating OS X will not take so much space but in order to make some free space available in your external drive clone some of your data in some dvd. Or if you want to keep safe the given data of your Mac do the same. Cloning will not let you to purchase or reinstall apps again.So, I would recommend Stellar Drive Clone as an easy and reliable Mac cloning application

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