The short answer is yes. Here's a detailed look at why password managers are worth it, the trade-offs to consider, and which one we recommend.
If you've ever asked yourself "do I really need a password manager?" or "are password managers worth it?", you're not alone. It's one of the most common cybersecurity questions people search for. The reality is that most of us know our password habits are bad, but we're not sure if a password manager is the right fix.
In this guide, we'll break down exactly what a password manager does, weigh the pros and cons honestly, and explain why we believe it's one of the single best investments you can make in your digital security.
A password manager is a piece of software that securely stores all your passwords in an encrypted vault. Instead of memorising dozens (or hundreds) of passwords, you only need to remember one: your master password. The password manager handles everything else.
Here's what a typical password manager does:
Think of it as a digital safe for your credentials. You lock everything inside it, and only your master password can open it.
Before we discuss whether a password manager is worth it, let's be honest about the problem it solves. The average person has over 100 online accounts. That includes email, banking, social media, streaming, shopping, work tools, government portals, and more.
Nobody can memorise 100 unique, strong passwords. So what do people actually do?
The consequences are real. In 2023 alone, over 8 billion records were exposed in data breaches worldwide. When attackers steal credentials from one breached service, they immediately try those same credentials on banking sites, email accounts, and social media — a technique called credential stuffing. If you reuse passwords, one breach can compromise your entire digital life.
This is the problem a password manager solves. It makes it effortless to have a unique, strong password for every single account. You can generate a strong password in one click and never worry about remembering it.
Here are the concrete benefits of using a password manager:
A password manager generates truly random passwords — 20+ characters with uppercase, lowercase, numbers, and symbols. These passwords are virtually impossible to crack with current technology. And since the manager remembers them, you don't have to sacrifice security for convenience.
This is the single biggest security advantage. If one service gets breached, your other accounts remain safe because none of them share a password. Without a password manager, maintaining unique passwords across 100+ accounts is simply not realistic.
No more typing passwords, no more "forgot password" resets, no more hunting through old emails. Your password manager fills in credentials instantly on websites and apps. It's actually faster than typing passwords manually.
Premium password managers scan the dark web and known breach databases to alert you if any of your credentials have been compromised. This gives you time to change a password before an attacker can use it.
Need to share a Netflix login with family or a business account with a colleague? A password manager lets you share credentials securely without sending passwords over text or email where they can be intercepted.
Unlike browser-based password saving (which only works in that specific browser), a dedicated password manager works across all your browsers, apps, and devices. Switch from Chrome to Safari? Move from iPhone to Android? Your passwords follow you seamlessly.
No tool is perfect. Here are the legitimate concerns and how to think about them:
This is the most common objection: "If someone gets my master password, they get everything." It's a valid concern, but consider the alternative. Without a password manager, you're almost certainly reusing passwords — which means every breached service is a point of failure for all your other accounts. A single, strong master password protected by two-factor authentication is far more secure than dozens of weak, reused passwords scattered everywhere.
Premium password managers typically cost between $2 and $5 per month. Free tiers exist but come with limitations. Consider this: the average cost of identity theft to victims exceeds $1,000, not counting the time and stress of recovery. A few dollars per month is inexpensive insurance.
There's a setup period where you need to install the app, create your master password, and begin saving credentials as you log into sites. Most modern password managers make this quite smooth with browser extensions and import tools, but it does require some initial effort. After the first week, it becomes second nature.
If the password manager service goes down or you forget your master password, accessing your accounts becomes difficult. Reputable managers offer emergency access features, recovery options, and offline vault access to mitigate this. The key is choosing a well-established provider.
Most people know they should use a password manager but keep putting it off. NordPass makes setup easy — import your existing passwords, install the browser extension, and you're protected in minutes.
Get NordPass with 50% discount →Some links on this page are affiliate links. We may earn a commission if you make a purchase, at no extra cost to you.
If you're still on the fence, let's address the most common objections directly:
"I don't have anything worth stealing." You do. Your email account can be used to reset passwords for every other service you use. Your identity can be used to open fraudulent accounts. Even your streaming accounts have resale value on the dark web.
"My browser saves my passwords already." Browser password storage is a convenient starting point, but it's less secure than a dedicated manager. Browser-stored passwords are a primary target for malware, they lack strong encryption in many cases, and they don't work across different browsers or native apps. For more on this, see our article on whether it's safe to save passwords in Chrome.
"I have a system that works." If your system involves any form of password reuse, pattern-based passwords (like "Facebook1!", "Gmail1!"), or storing passwords in a spreadsheet or note, it's not as secure as you think. Attackers know these patterns.
"It's too expensive." The cost of a password manager is a fraction of the cost (financial and emotional) of dealing with a compromised account. Many offer family plans that cover five or more users for the price of a coffee per month.
Every major cybersecurity organisation — from the Australian Cyber Security Centre to NIST to the Electronic Frontier Foundation — recommends using a password manager. It is one of the most impactful, accessible security steps any person can take.
There are several good password managers available. After evaluating the major options, we recommend NordPass for most people. Here's why:
While most password managers use AES-256 (which is excellent), NordPass uses XChaCha20 encryption — a modern algorithm that's faster, simpler to implement correctly, and considered the next generation of encryption standards. It's the same algorithm used by tech giants like Google for internal encryption.
NordPass encrypts your data on your device before it ever reaches their servers. They literally cannot see your passwords, even if they wanted to. If their servers were ever breached, attackers would only find encrypted data they cannot decrypt without your master password.
NordPass works on Windows, macOS, Linux, Android, iOS, and as a browser extension for Chrome, Firefox, Edge, Safari, Opera, and Brave. Your passwords sync seamlessly across all your devices.
The NordPass Family plan covers up to 6 users, each with their own private encrypted vault. This is an excellent way to get your whole household using a password manager without paying for individual subscriptions.
NordPass continuously monitors known data breaches and alerts you if any of your saved credentials, email addresses, or credit card details have been exposed. You'll know immediately if you need to change a password.
NordPass comes from the same team behind NordVPN, one of the most trusted names in online privacy. They have a proven track record and the infrastructure to keep your data secure.
If you want to explore more about where to save passwords securely, we've covered that topic in a separate guide.
NordPass uses next-gen XChaCha20 encryption, works on every device, and includes a data breach scanner. Set up takes less than 5 minutes.
Get NordPass with 50% discount →Some links on this page are affiliate links. We may earn a commission if you make a purchase, at no extra cost to you.
Switching to a password manager is easier than you think. Here's a practical step-by-step approach:
Within a week, you'll wonder how you ever managed without one.
