How to version control config files pragmatically?

Question

Suppose we have a config file with sensitive passwords. I\'d like to version control the whole project, including the config file as well, but I don\'t want to share my pass

Answer 1

Have a separate file with ONLY the secrets in, that isn't under version control?

Or ideally, do away with passwords entirely use openssh, or similar, and do public/private key authentication for each user.