That's what I do.
The number of times my home's been broken into: 0 (and based on news, virtually all of burglars are just looking for jewelry, wallets, and similar stuff and they won't bother trawling through your papers for passwords).
The number of times I've had devices on my network that run some hastily put together vendor firmware that was last updated six years ago: too many to count.
The number of times I've had to rush to update/patch my own computers to fix a newly disclosed remotely exploitable vuln: quite a few.
The number of times I've actually witnessed attempts at trying to exploit said remote vulns: too many to count! Sometimes mere hours after I've patched my stuff.
The number of times I've known I've had malware: at least a couple times (admittedly long ago, back when I ran Windows..).
I just don't trust keeping personal passwords on online connected computing devices. And password managers are a very lucrative target today (plus it tends to be all eggs in one basket for most people!).
I do keep passwords for employer's stuff in a password manager but not on the same device(s) I use said passwords on; even if you had malware on my work laptop, you wouldn't get my master password, nor would you be able to grab my password database. Passwords are also not stored on any third party service.
The price I pay is a relatively minor inconvenience. (I do have plans for something more convenient though!)