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Ravi Kumar Jha, MD & 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 crick 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. Over the past 35-36 years, LIC has been my professional home. My initial six-month training took place at Vishwa Yuvak Kendra, New Delhi, under the Delhi Zonal Training Centre. During this period, I was posted at the Sirohi Branch under Jodhpur division for two-and-a-half months of practical training. The experience was enriching, and the warmth and support from the people of Sirohi left a lasting impression. As far as I recall, my first salary was approximately Rs 3,290.
Was it enough for your needs back then?
It was sufficient for my personal needs but somewhat limited when considering my family responsibilities. After completing my training, I was posted to Raipur branch, where I was allotted staff quarters and made it a point to send a portion of my salary to my parents in Ranchi. Despite the modest salary, I prioritised saving by investing in multiple LIC policies, with premiums deducted directly from my salary. Mutual Funds were not a popular mode of investment then.
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 in Delhi 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.
1 May 2025
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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 Rs100 or Rs200. The discipline of saving instilled early in one’s career will lead to significant financial security over time.
Is there any story or experience that reminds you of your first pay cheque?
Nothing particular stands out, 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. Supporting my parents financially and ensuring their well-being became my priority.
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 and LIC agents 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 in 1988.
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. I would like to share an incident from 2007 when my son, Shubham, had his sacred thread ceremony in Deoghar, Jharkhand. In our Mithila society, such ceremonies involve substantial expenses. Fortunately, by then, some of my policies had matured, and my PPF had also yielded returns. 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?
While I may not have started saving from my very first pay cheque, I was fortunate to invest in insurance policies, PPF, and NSCs from very early in my career, being surrounded by experienced financial professionals who provided me with valuable insights into financial planning. These early investments played a significant role in my ability to purchase a duplex house in Dehradun in 2009-10. The habit of saving consistently proved to be a financial blessing.
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 savings are the cornerstone of financial security. Without structured savings, managing responsibilities and navigating inflation, sustaining 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, and a disciplined approach to saving and investing ensures that financial surprises do not become burdens. Whether through insurance policies, SIPs, or other investment avenues, young professionals should cultivate the habit of financial discipline early in their careers to build a secure and resilient future.
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Wealth Creation Is About Effective Financial Management, Says Ravi Kumar Jha – outlookbusiness.com
