To Vault or Not to Vault Passwords

It seems the more and more websites I sign up for the more and more passwords I have.  I generally alternate between 3 user names and 3 passwords but I can never remember which site I used which.  So I end up clicking that little line that says "Forgot my Password", then log into my email to retrieve it and start all over again.

I have heard about password vaults but they require a monthly fee due to their high security.  I use to use a post it note beside my computer.  But that list will soon get too long and has no security.  And with the mobility of laptops, where do we store these passwords.  In our back pockets?

When I'm in the car I enjoy tuning into to the Kim Komando show because her knowledge and insight into matters like this.  Kim's site suggests a lot of tried and true and FREE software.  For passwords vaults they recommend KeePass.  Below are the instructions taken from Kim's site (hope this is ok Kim)

ACTIVE RAIN: Has anyone had experience with this program or suggests another??

How it works :After you download and install Keepass, there are several easy steps to setting it up. The first time you open KeePass, you have to create the file that will store your passwords. KeePass 1.05 is the most recent version and will work with Windows Vista.

1. Click the New button at the top left of the window.
2. You'll be prompted for a master key. Make it a good one. That's the password you're going to use from now on to unlock all the others.

KeePass includes categories such as e-mail and home banking. To put a password into KeePass, select a category and then click the Add Entry button. You'll be able to enter a title for the password.  The title will help you easily identify where the password is used.

No more lost passwords:Let's take Hotmail as an example. An effective title for a Hotmail password could be simply "Hotmail." You can also enter the Web address where the password is required.

KeePass automatically fills the password box with a random password. Chances are that it's stronger than the password you already use for Hotmail. But to make it work, you would have to log into your account and change it to match KeePass.

Kim's Tip: If you want to keep things simple, erase the pre-filled box and put in the password that you already use.

Finally, click OK. Do the same steps for all of your everyday passwords and take a load off your memory.

You can drag and drop passwords directly from KeePass. Click the password you need from KeePass and move it to the blank form on a Web page. The password will appear in the blank.

KeePass works with IE to maintain your login information and fill out webforms automatically. It also works with Firefox in converting passwords to the program in a readable format.

You can take KeePass with you on a thumb drive. To do it, you must copy two files onto the thumb drive. One is the KeePass program (KeePass.exe). The other is the file containing your passwords (the default is called Database.kdb).

For more information please visit Kim's site at www.KimKomando.com