How best to manage TYPO3 installations using git?

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Hello I have been meaning to get around to this for a while now, but I would like to use git to maintain some typo3 development sites. I did some digging around and the most informative (chromium translated site) info on the subject isn't clear but did make me think. I'd like to know how to setup a git managed repo and if there are some/other folders that I should ignore when setting up the repo, what I should be wary of, best practices, etc. I have decided that with each version, a db dump would be done separately which corresponds with the milestone because as of now I'm not sure how to deal with this aspect of CMS versioning.

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