Most password managers can easily handle that. Some have random password generators which one can use to generate unique passwords. These random password generators can allow selection of password length (as some sites have a minimum of characters), the type of characters to be included when generated (some websites require a range of different characters while others can be restrictive and won’t accept symbols for example) and each generated is unique and saved for the particular login. A lot also automatically update the password when one changes it…making the process very easy and streamlined. Using one of the past 12 passwords is irrelevant as long random passwords could have many trillions of combinations, meaning it would take many lifetimes for the same password to potentially come around again (if never).
For a 8 character random password, the number of possible combinations is around 3.026×10^15 or 3,026,000,000,000,000. If one uses say a 20 character random password, the number of possible combinations is astronomical. If one uses combinations or words, the number of possible combinations falls dramatically as each character is dependent on the ones to either side of it, unlike a random generated password.
For example a 8 character password like &of+IMl6 has the above number of combinations (3,026,000,000,000,000), where a password like oathave1 may only have tens of thousands of combinations based on words which are make a total of 8 letters. This simple example shows the importance of random passwords to maximum security over those easy to remember.
While one may feel that their own system is reliable, it if often the login website where leaks occur. Unfortunately if a site has been compromised and it allows a hacker to infiltrate that particular website or others one may have by using the same/similar passwords, it is often found after it is too late. As email addresses are often used for logins, it is very easy for other logins to be compromised.
I personally (risk adverse in relation to maintaining internet security) would rather a unique highly random, long character password made from letters (capitals and lower case), symbols and numbers for each login to reduce any future risks of one of the logins is compromised and one doesn’t know if other logins are compromised also.
Edit: should also have said that some password managers do audits of one’s passwords and advise when there are duplicate passwords used for multiple sites and also when passwords have been used for some time without being changed. The later is useful as one often doesn’t know for some time after a website has been compromised. Having a password manager remind one to change a password assists in maintaining one’s own login integrity as one doesn’t have to wait until the host to advise of the compromise and for users to reset passwords.
Before using a password manager, I also has a number of passwords that I used based on the level of risk. I now realise how problematic such can be to maintain integrity across all logins used and am pleased that now I have the ability to have far more secure passwords.
I use Norton Vault as it offers the above functions and also useable across a range of platforms (mobile devices through to desktops). It has audit functions also a random password generator. It also automatically updates password changes…but I always check that it has been updated following the onscreen notification. It also requires one to remember two passwords to gain access to the vault - one for the account and one for the vault…both are different to ensure that there is two step verification. It appears that the third step outlines above (mobile code verification) for some reason has a bug/failed for some reason, which has prevented access to the account and Norton Vault.
I prefer not to have hardcopy password lists as they can easily be seen and used by others.
Yes, it is best to export the encrypted password file from time to time and store it elsewhere…say on a portable device at a family members house. One can buy a portable drive for a few dollars for such purpose.