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malo comments on Less Wrong Product & Service Recommendations - Less Wrong
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Now that I've been using 1Password for over a year (probably closer to two), it's become indispensable.
Although it's on the expensive side, I would say its worth every penny. 1Password can store all your passwords, as well as notes and other information like passport, bank account, credit card etcetera. It also has a password generator which I use every time I sign up to a new site/service. With 1Password on my phone, tablet, computer, and in my Dropbox, I have access to all my passwords and other important documents anywhere. They also make plugins for all major browsers that make using 1Password on your computer remarkably easy.
It has simplified a previously annoying part of my digital life, while also making it more secure.
I haven't tried 1Password, but can recommend LastPass unreservedly.
I haven't tried 1Password or KeePass, but I've used LastPass for something like a year now and it works well for me. Using a small set of passwords across all sites, especially given that easily a dozen websites I've used have been hacked, is just insane. I regret that I didn't start using some password manager long before hand.
I also consider a password manager essential. I use KeePass, which isn't quite as full featured, but is free/open source (FOSS) and has clients for everything except iOS.
Second the recommendation for KeePass - I've been using it for about a year now.
The password entry hot key is magic.
Just set it up; works great!