jdean3 - Tales of Transformation

Our normal year end financial review brought about a disappointing revelation.

Homeowners Insurance

It seems that our home owners insurance premium went up a couple of percent and it struck me as odd since the housing values in Michigan have plummeted 50% this year.  It forced me to take a deep dive into something I considered a fixed cost and yet saved myself a small fortune in the process.

To make this long story short, just know that I have owned 8 different homes in different States (all through relocations with my job) since 1983 and we have been with State Farm Insurance for our homeowners coverage with every one.  We have NEVER had a claim, even when we have had small mishaps that might have been covered.

It has been our misguided belief that our loyalty to our insurance provider (or phone provider or bank lender or whatever) resulted in a favorable rate and treatment and there was never any cause to shop around as long as it wasn’t “broken”.

Boy was I wrong!

I decided to call GEICO (since I’ve grown to be a fan of Warren Buffet) to compare coverage and rates.  Much to my surprise, they cut my bill in half!

Believe me, I was a skeptic until the lady on the other line of the phone walked me through all the details.  They did a line item by line item comparison of every particular of my home (foundation, construction, fireplaces, moldings, basement types, roof types, patios, etc) since the home was built in 1936 and has had multiple enhancements along the way.

Loyalty

It turns out that they RAISED the amount of coverage by about 10% since the replacement costs exceeded the present selling value and kept my deductible the same…and still cut the bill in half!

My skepticism became elation….then my disappointment (almost anger) of being over charged for 20+ years for blind loyalty set in.

It’s a mistake I won’t make again.

It seems vendors/suppliers/companies that have long term relationships with you are easily tempted to take you for granted.  It seem nuts to me that a cable tv supplier or cellphone provider can give a new customer the same service as an existing customer (one that may have been with them for 20 years or more) at half the price….but it happens every day.

Value doesn’t always come looking for you.  You must go find it and then continuously benchmark it as time evolves.  Nothing stays the same.

How about you?  Have you found a better deal than the one you had been using for years? In a time of financial duress, we might all benefit from each others stories.

Next Deadline:  1/9/10

Arguably one of the best boss’ I’ve ever had, taught me one of the most important lessons I’ve learned professionally.  It was during an incredibly stressful period of time and he was losing a political battle being waged like nothing he had ever experienced.  If you were with or have heard of  “the Old Ford culture”  you know that what is often described as a culture of “sharp elbows” is a polite way to say one might mistake an ear biting Mike Tyson for Shirley Temple.  It was ugly to watch.

I recall seeing how low he was and how it impacted his outlook on just about everything.  It was troubling.  He was a beaten man and was visibly demoralized.

The fact of the matter was, he wasn’t in the “loop” any longer.  He was slowly and methodically being pushed out.  He was being ridiculed  and he knew it.  Of course, it was all in the name of performance.  Usually the beauty and fallacy of a myriad of performance metrics (half positive and half negative) is there are enough to paint any story you want…whenever you want.  And his managers were painting a pretty negative picture.

He orchestrated his own exit from the situation.

I met him a few months later and we discussed those last few weeks he was my boss.  His words stick with me now and are as applicable today as they were for him then.  He said “Don’t let ANYONE tell you what your value is.  That’s your job.”

It is awfully easy to let a personal spat, a performance review, a downsizing, down-grading, job reshuffling or even a negative verbal comment to make you feel like garbage.  Others (without the skill to properly lend constructive criticism or perhaps even the talent to know the value of one priority metric over another), may treat you like your value is less than you believe.  Some might even mistakenly draw conclusions based on others evaluations of your value, but that does NOT establish your true value!

March to your own drum.  Don’t let someone else set your value.  Hear their words, watch their actions, accept their decisions, apply their suggestions….but don’t let it sway your opinion of the value you hold.  They are fallible and have every right to be wrong.

We too often let others define our own success.  I love the multitude of ranks in the military, the boy scouts and most corporate structures.  It helps us have targets to shoot for and ladders to climb (metaphorically).  But it is simply a stupid stripe to your 5 year old!

One of the best stories I tell about my daughter was when she was about 10 years old.  I had just been promoted back to Detroit from Colorado.  It was a big promotion and I was thrilled and excited to tell the family.  We’ve moved 8 times, so it wasn’t like the thrill of moving did much for them.  So after giving the good news…my daughter sat quietly for a few seconds and then said

“I don’t get it.  Why do we have to move back to Detroit?!  You are gone all the time anyway….why don’t you just keep coming back here when you come home?”

She didn’t mean to bring a tear to her father…but she has that affect. If only had I listened closer.

The fact of the matter was, she could care less about my rank or job.  She only cared about what was important!

Difficult times have silver linings.  Look around.  Enjoy what really matters!  You are the ONLY one who can establish your value.