For this question, please assume I have followed every possible security measure to secure my Linux server. Only I have access to the web server via one open SSH port. If there are security issues then that's a separate issue.
I'm using a cloud server - which I believe is server virtualisation.
Now, I take my brilliantly secured server and I set a file/folder to 777 that's NOT publicly accessible (e.g. a cache folder for a server-side framework).
777 I believe allows 'world' access, but because I'm the only person that can access the server then does it matter that I set the folder to 777 world access?
I'm guessing if the file was in the public area of a web server then this wouldn't be a good idea, but I can't see an issue if it's in the non-public area. In fact, surely I could 777 every non-public file and rely on the fact that only I have access anyway? Of course I'm not going to so this, but my point is surely that file permissions are superseded by the fact nobody else can access the server anyway.
Also, does it make a difference that I'm using server virtualisation? Is this less secure? Can other people who are sharing the same server as me see my files because I'm using 777 permission?
Basically I often get file permission problems when the server-side framework's code needs to write to folders (e.g. cache). 777 fixes it every time, but I want to ensure that I'm making the best decision and not just taking the easy way out.