Graham argues that there are three tiers of sites and that you should apply variable password policies to each tier. The key lesson is to have unique passwords across the tiers so that a tier 3 site being hacked doesn’t endanger your tier 1 sites. You probably want unique passwords for each tier 1 site.
At the first tier is your e-mail account. Since a hack of your e-mail account means hackers can reset passwords on all your other accounts, it would be terrible if that password were lost. This should both be very complex, as well as wholly unrelated to any other accounts.
At the second tier are important e-commerce sites, like Amazon.com, NewEgg,com, Apple.com, and so on. The major sites are unlikely to be hacked. You could probably share the same password for all these accounts.
At the third tier are the unimportant accounts, like StratFor, where it wouldn’t be catastrophic if your password were lost. Again, you could choose a third, simple password, like “passwd1234” for all these accounts. It’ll probably get stolen within a year, but who really cares?
While I agree, in part, I still think that a highly complex passphrase (not password) and a strong password daemon like 1 Password is probably the best approach for most people. That way you can enjoy strong, unique, passwords and generate new ones for each account you open.
