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You also can generate backup codes with gmail in case you get locked out after you turn on 2 step verification. I highly recommend every one do this. I've had my gmail account hacked a couple of Christmases ago and I am very impressed with the charges in security they've taken since then.
I recommend keeping your passwords on a encrypted thumb drive in a security box and update it as needed. I wont tell you where else I keep them but keeping them on your PC is probably not a good idea in case of hard drive failure.
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