Money & Me: ‘Cash lying idle in a bank account is counterproductive’

Finance executive Kuldeep Puri believes wealth is beyond money and also includes family, friends and good health

Kuldeep Puri says investing in his health is his best investment. Antonie Robertson / The National

Kuldeep Puri has consistently saved and invested a big share of his earnings.

The finance director at Hitachi Energy for the UAE, the Gulf and Egypt traces this habit to his childhood where he learnt from his father to spend only on absolute necessities and save the rest for emergencies.

Today, he oversees overall finance, including accounting, financial planning, audits, fiduciary activities, treasury and tax functions at Hitachi Energy.

Mr Puri, 42, who has been in Dubai since 2009, studied at a government school in New Delhi and graduated from Delhi University.

He is a chartered accountant and holds a certified public accountant certification from the US.

Mr Puri started his career with engineering company ABB in Baroda, in India's western state of Gujarat.

He currently lives in Dubai Sports City with his wife and son.

Did wealth feature in your childhood? What did you learn from it?

Not really, I come from a middle-class Indian family, where I was brought up with the philosophy of spending as an absolute necessity and saving the rest for emergency situations.

Obviously, the definition of necessity keeps on changing depending on your earnings, but saving and investing a good share of my earnings was always the case to secure my future.

I heard two things at a young age, which have stayed with me until now: Money brings confidence and money attracts money.

Having said that, I must clarify that wealth is not just money earned, it is also your family, friends and your own physical and mental health. I believe in the saying “health is wealth”.

How did you first earn? What did your first job pay?

I earned my first income as an articled clerk, where I was getting a stipend of 800 Indian rupees a month. At today’s exchange rate, it is $10. But it was more about learning than earning.

In my first real job at ABB in 2005, my salary was 300,000 rupees a year, plus bonus and medical insurance.

I moved to Dubai in 2009 and my first salary here was around Dh16,000 to Dh17,000 a month plus other benefits.

Any early financial jolts?

Thankfully, no financial jolts faced.

How do you grow your wealth?

A big share of my earnings is saved and invested. I invest 35 per cent to 40 per cent of my salary every month in various US equity-linked funds through a systematic investment plan (SIP). I have taken life and critical health insurance, too.

I also have a regular SIP in Indian equity and debt markets. Every six months, I assess my savings and emergency fund requirement. I invest the balance either in mutual funds in the Indian stock market or structured funds in global markets.

I believe in diversifying my portfolio in debt, equity and fixed deposits. As an Indian, there is the occasional gold and real estate purchase.

My mantra is money attracts money; the more you invest, the more money you will create. Money lying in a bank account is counterproductive.

I also believe in long-term investments and largely invest for the long term. But I do take chances with some short-term, high risk and high return sort of investments but with a limit on the amount so that even if it lost, it will not affect me and my lifestyle.

Are you a spender or a saver?

A mix of both. I live a decent lifestyle. I do not hold myself back on spending on things I like. I spend when I feel I should enjoy my life.

But I try to maintain a good balance between spending and saving.

Have you been wise with money?

I think I am OK with money so far, but if you probably ask my parents, they would say no.

In hindsight, I could have done some investments differently, but hindsight is always beautiful.

What has been your best investment?

Investing in my health is and will always be my best investment. This also includes health and life insurance, which ensures that all my liabilities are paid off and my family will be financially secure in case of any emergency.

Any cherished purchases?

My first property in India is a cherished purchase. There is always an emotional connect with the first house. I bought this unit in the National Capital Region in 2014 to 2015.

How do you feel about money?

It is a necessity in this world. It may not be everything but it is a substantial part of everything in life.

Having said that, it is also important to stay grounded and not blindly run behind money but also give equal importance to your health and family. Only then will you be able to enjoy money, if not, money is a waste.

Any financial advice for your younger self?

I should have diversified my investments much earlier than I did.

I should not have always put my savings into fixed deposits and, instead, invested more in equities then.

Any key financial milestones?

Closing my mortgage in the UAE is a main milestone right now. Once this is completed, then I will move to my next milestone.

I bought this property in the UAE in 2017.

What luxuries are important to you?

A nice house, a good car and a couple of good holidays every year.

What are your financial goals?

To have no liability when I retire. Other goals include good education for my child and a healthy retirement fund to live peacefully with no financial worries.

I would also like to help underprivileged children with their education. I do it now, too, and would like to continue it when I retire.