Here is a quick test. How many passwords do you have? Compare that to, how many web sites you visit require a password? If the numbers do not match, you are using the wrong passwords. The problem with using the same password in multiple sites is that once one site is hacked, you are vulnerable with all the other sites. If you are not too concerned about this issue, I suggest you read the ordeal of Mat Honan.
Fortunately, the solution is easy. You need to have a unique password for each site that requires it, and make each password long (12-16 characters). It is easier to crack “51Tf%09c” than “ThisIsAnExampleOfALongPassword.” Managing many passwords will become a chore, so if you don’t already use one, make the right decision and download a password manager TODAY. Here are a few to get you started:
I use LastPass. It is worth $12 per year. It syncs the passwords across different devices, which is a timesaver. It also memorizes the credit card number (encrypted), so I don’t need my wallet next to me when I am making a purchase online. It even tests the strength of your passwords and tell you to generate new ones if it sees any weak ones.
It does a while to set everything up, but it’s well worth the effort. The alternative is a lot worse, in my opinion!