Our new found freedom has injected TREMENDOUS financial flexibility into our lives...including the ability to pay cash for our daughter's college education as well as her wedding earlier this year! Thanks Dave!!
Through it all, we have established a life of financial responsibility and discipline...and have lived that life. But, as I found out this week, you can never let your guard down...no matter how long you've been in the program.
When we were working our Debt Snowball, I had made some cost saving changes to our auto insurance...primarily to drop full coverage from one vehicle that was several years old. However, in evaluating what could be done to reduce auto insurance costs, it never dawned on me to have my policy re-quoted by other competing agencies/companies....big mistake.
Long story short, now 3.5 years after starting FPU, I discovered today that my insurance agency had been over-charging me on both my auto and home policies. In soliciting new quotes, our home insurance is dropping from $1100/year to $575/year. Auto policy is dropping from $186/month to $78.75/month. In other words, I've been paying about $2000 a year too much!
Even though we are debt free, I have been complacent and, as a result, we lost an opportunity to save approximately $7000 over the past 3.5 years. That's $7000 that I could have used to help someone in a financial pinch or to give some FPU "scholarships" to some deserving individuals.
In retrospect, I probably should have been soliciting competitive quotes for our policies at least every 1 to 2 years. Because I wasn't vigilant, I lost a great opportunity to save some money and possibly change some lives.
Again, as you make financial progress, don't become complacent in your success and feel like you are at a point where you don't have to pay attention. Significant savings opportunities will pass you by if you don't stay engaged in the cost containment process.