How can I securely store passwords on my Mac?

Do you have personal or sensitive information about yourself or your clients on your Mac? Such as credit card numbers or passwords? If so, I recommend storing this information in a special kind of file known as an encrypted disk image. I store a list of my own passwords and other sensitive information in such a file on my Mac laptop. This file is thus always readily available while still being inaccessible by others even if my laptop were stolen.

Without getting very technical, disk images were invented as a way to make a backup copy of a disk such as a floppy or CD, but other uses have emerged over time. Mac OS X lets you create a blank disk image that can be thought of as an empty folder. Additionally, this file can be encrypted which requires a password when you open it. Thus, in an over-simplified way, you can think of an encrypted disk image as a password-protected folder.

Read my next blog post for step-by-step instructions on how to create and use an encrypted disk image on your Mac.