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Using Strong Passwords
By far the easiest and best preventative measure for securing your personal information is to use 'strong' passwords that are unique for each website or application; keep them safe, keep them private, and change them regularly.
A 'strong' password is one that is extremely difficult to crack via so-called 'brute-force' techniques. As a minimum standard, passwords should consist of a random series of at least 12 upper and lower case letters and numbers. Using extra characters, such as punctuation marks and other symbols also helps to make passwords stronger. You can automatically generate strong passwords by viewing/refreshing the following web page:
To remember your passwords, use a mnemonic (memory technique whereby each character in a password is associated with a word so as to form a phrase that is easier to remember), or write them down and keep them in a very safe place (e.g., in your wallet or safe - not lying on on your desk or stuck to your PC, and not stored in an unencrypted/unprotected file of any sort).
Another alternative is to use a login manager application, such as KeePass (free; open source; highly recommended) or RoboForm (commercial application), to generate strong passwords and securely store all of your login details. These programs will also, in many cases, automatically enter your login details into login forms, which is a very handy feature for those of us that need to login to lots of different websites and applications on a daily basis.
It is important to change your passwords regularly - at least every two-three months, depending on the importance of the login and how safely you have stored it.