Wealth Creation Is About Effective Financial Management, Says Ravi Kumar Jha
Ravi Kumar Jha, MD and Chief Executive Officer of LIC Mutual Fund Asset Management Ltd, talks about the joys of providing for his family right from his first salary and achieving financial goals by building his savings brick by brick over his long innings in the company
Can you tell us about your first job and how much was your first pay cheque?
I began my career with Life Insurance Corporation of India (LIC) on September 18, 1989, as a direct recruit officer in the cadre of Assistant Administrative Officer. My initial six-month training was at Vishwa Yuvak Kendra, New Delhi. During this time, I was posted at the Sirohi Branch under Jodhpur division for two-and-a-half months of practical training. The warmth and support from the people of Sirohi left a lasting impression. As far as I recall, my first salary was around Rs 3,290.
Was it enough for your needs back then?
It was sufficient for my personal needs but somewhat limited considering my family responsibilities. After completing my training, I was posted to the Raipur branch, where I was allotted staff quarters and started sending a portion of my salary to my parents in Ranchi. Despite the modest salary, I prioritised the habit of saving by investing in multiple LIC policies, with premiums deducted directly from my salary.
Do you remember doing anything special with your first pay cheque?
While it is difficult to recall everything, I do remember purchasing some clothes for myself upon receiving my first salary. Later, after being posted to Raipur, I bought a small black-and-white TV, four visitor chairs, and a table.
Do you have any regrets about how you spent your first pay cheque? Would you give your younger self any advice?
There are no major regrets. However, had I been able to save more, managing financial responsibilities would have been somewhat easier. Given the limited salary, the scope for saving was restricted. That said, I am grateful to my colleagues and advisors who guided me in starting my savings journey early.
My advice to young professionals is to spend wisely and cultivate a habit of consistent saving and investing. Today’s youth have better financial opportunities. With tools like systematic investment plans (SIPs), they can start investing with as little as Rs 100 or Rs 200.
Start saving from the very beginning, regardless of the income level. Even small savings, when accumulated over time, can create a substantial safety cushion
Is there any story or experience that reminds you of your first pay cheque?
Nothing in particular, but I do remember that after some time in Raipur, I visited my family in Ranchi and used my savings to purchase a washing machine for my mother. It was a small gesture, but it brought great joy to her.
Did earning your own money change your perspective on spending and saving?
Absolutely. Before joining LIC, I used to tutor young students, using my earnings to apply for various government jobs, including LIC, PSU banks, and public sector enterprises. Securing a job at LIC transformed my outlook, instilling confidence and a sense of responsibility.
With a limited salary, I always practised mindful spending. After my marriage, my wife, Kalpana, adapted seamlessly to our financial situation, efficiently managing household expenses while maintaining a strong savings habit. Her financial discipline helped us navigate emergencies effectively.
Additionally, my colleagues at Raipur branch played a crucial role in guiding me toward smart financial planning. Investing in LIC policies, Public Provident Fund (PPF), and National Savings Certificates (NSCs) proved invaluable, especially as my father required extensive medical care after being diagnosed with paralysis, post his retirement.
Did your first pay cheque influence your career path or act as a stepping stone for your financial decisions?
Certainly! It set the foundation for my financial discipline and long-term planning. In 2007, my son, Shubham, had his sacred thread ceremony in Deoghar, Jharkhand. Such ceremonies involve substantial expenses. Fortunately, by then, some of my policies had matured. These savings allowed me to conduct the ceremony comfortably without financial stress. Looking back, I feel immense gratitude for having started my savings journey early.
Many advisors recommend starting savings with the first pay cheque. Did you follow this advice?
Even though I did not start saving from my very first pay cheque, I was fortunate to invest in insurance policies, PPF, and NSCs, very early in my career, being surrounded by experienced financial professionals who provided valuable insights. These early investments played a significant role in my ability to purchase a duplex house in 2009-10.
How has your relationship with money evolved over time?
Money is an essential tool that enables a comfortable life at every stage. Over the years, I have realised that disciplined saving is the key to financial security. Without planned savings, managing responsibilities, tackling inflation, and maintaining a certain lifestyle would have been challenging. My financial journey has taught me that wealth creation is not about high earnings alone, but about effective financial management.
What advice would you give young professionals on managing their first pay cheque?
My advice is simple: always have a positive outlook on life and start saving from the very beginning, regardless of the income level. Even small savings, when accumulated over time, can create a substantial financial cushion. Life is full of uncertainties, so a disciplined approach to saving and investing ensures that these surprises do not become burdens. Whether through insurance, SIPs, or other investment avenues, young professionals should cultivate the habit of discipline early in their careers.
letters@outlookmoney.com