Using Joomla! Administration
In the "back end" Administration view, go to  Site --> Global Configuration --> Server.

Using the UNIX shell
Note: The [i]find command automatically assumes that it should start from the current directory. To be safe, go to your public_html directory and specify a path as the first argument. Some shells, such as bash on Apple OS X, must have a path specified in the find command.[/i]

find . -type f -exec chmod 644 {} \;
find . -type d -exec chmod 755 {} \;
chmod 707 images
chmod 707 images/stories
chown apache:apache cache

Using a shell script
See this post

Notes:
1. Test all third party extensions after changing permissions.
2. You'll need to reset write permissions to install more extensions.

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