Do not fall for these money traps!
Don’t fall for these money traps!! I was shocked to see this text on LinkedIn from a well-known CPA coaching institute offering me to study with them to get a $60,000 job in the US.
The problem here is they smartly put "50 lakhs INR" in brackets to lure people to join their course. Well, guess what. Earning $60,000 in the USA is actually equal to earning approximately INR 13.2 lakh in India. NOT 50 Lakh. A coaching institute known for imparting finance education missed the concept of Purchasing Power Parity. Surprised as much?
Let me explain,
Big Mac Burger is available in almost every part of the world. Ideally, it should cost the same in each country, right? But, if you look at the Global Big Mac Index, you will notice that the Big Mac is 5$ in the US and $2.5 in India. In other words, Big Mac costs INR 410 ($5) in the US, but INR 250 in India (about 40% cheaper in India). In the same way, if you compare living costs (like rent, utilities, transport, and insurance), you will realize that based on the Purchasing Power Parity conversion factor between India and US, 1$=INR 22.91.
Sources:
