Why do I need different passwords
How many different passwords do you have for the websites you use? I hope the answer is more than one.
It is highly recommended that you use a different password on each website that you visit. Especially if you have valuable personal information on those websites. Recent data exposed by hacker groups found that many users have the same passwords on multiple sites.
Why should you care? If a website that you use is hacked - or if a webmaster turns to the dark site - someone could have access to all your other sites. By creating different passwords for every site, you can protect yourself from events happening beyond your control.
If the thought of having different passwords for every site you use is overwhelming, then at least try to divide your sites into tiers. Use one password on sites that don't store sensitive data (sports, news or blogs). Have a different password on sites that could expose personal - but not financially ruining - information (facebook, twitter, etc.) But for banking and investment sites you should always have different passwords.