I have been struggling for sometime to find the perfect way to manage my passwords. I was not looking for just a single tool or an application but for a simple process I could follow easily. My goal was to have the highest level of security and spend the least amount of time getting access to places on web.
So, I wanted convenience and security. A convenient way can be achieved by choosing a password that is easy to remember and using it for all your sites, but that is not very secure. On the other hand, choosing long passwords that even you cannot guess and using different passwords for different sites is pretty secure but not convenient.
In many cases, installing a password manager application alleviates this problem to a certain extent. Many password manager tools install a browser plugin that alters the browser behavior to help you save time by automatically saving and filling out forms. This is all good, but, in many cases, plugins slow down browsers and the automatically saved passwords can get messy. Many websites have different pages for login forms and that creates a problem for saved passwords. So for one site you may end up with two passwords saved and one of them may be out of date. This way you may end up spending the time you saved onto cleaning up password records, waiting for your browser to load, installing or updating applications/browser plugins into your computers, and keeping your computers and devices in sync.
The process I am using currently is very simple but it gives me a good security and a good convenience. At first, I use a centralized place to put my passwords so I can get to them from anywhere (using the Internet of course). The best place for that is www.onlinecrypto.com. Online Crypto is built using Google technologies and infrastructure therefore offers a very high availability. Every time I need to create a password, I use the built in password generator of online crypto. This way I have different random passwords on different sites.
Secondly, I use the browser capabilities to store and fill out the login forms automatically. Most modern browsers come with some sort of password management capability but the one I am using is Safari, which keeps my passwords encrypted in the keychain access of my Mac. Since I am not a fan of browser plugins I also do not have flash plugin installed in Safari, so for those rare occasions where I do need to see some flash, I open up Google Chrome.
Even though this process requires some manual work at the beginning when you create or change passwords, I believe that it saves you time and reduces frustration in the long run. Anyway, this works for me, so give it a try, it might work for you too.