People all over the world prefer white collar jobs. Everyone is rushing towards it. It is dream job of every youth. Getting a white color job seems to them as a ticket to heaven. Employers also need white collar employees. White collar job seem to be the best in employment sector.

Do you also think so?

Please wait for a moment and take some time to read this hub. Calculate if you would be a gainer or loser before rushing an interview for white collar job and to be employed.

How much are you investing on it?

Calculate on an average cost of getting employed in a white collar job and the return in terms of money. I am talking of investing money only and not other investments such as time, labor etc. People take student loan for education and repay the same with interest afterward. Normally they repay it in installments. Often they pay for whole life or at least for very long time.

Federal student loan consolidation, best consolidation loan student, refinance with bad credit are some of the top search words in US internet. Do you know why these three phrases federal student loan consolidation, best consolidation loan student, refinance with bad credit are so popular? Why are these top paid key words?

Because people still love to see their wards into white collar job that requires huge investment. They want to be employed as white collar.The youth force in India, America or anywhere else are also very much interested in getting a white collar job.

An average English medium school in India costs approximately Rs. twenty-five thousands per Annam. It takes fourteen years of schooling that includes two years in pre-primary, ten years in secondary and two more years for higher secondary to complete basic school education.

Joining a professional course requires this minimum basic education. One has to spend Rupees twenty-five thousands per annum for a period of fourteen years. Thus total cost is Rs. 350 thousand. (This is only cost of schooling, if one takes tuition or joins a coaching institute, cost escalates enormously). It does not seem much as cost of white collar job  but wait!!!

If you do nothing but put that 25000 every year in a bank, it will be 1.5 millions! at the end of fourteen years at an average rate of bank interest in India.

Can you believe it?

You have to go to a college or institute teaching professional courses for four more years. Now put this 1.5 millions on interest for those four years. It will be 2.3 millions approximately. You require another 0.5 million for any professional course that makes you eligible for a white collar job. It will be 0.7 millions approximately with interest.

Hence, the total cost of graduation in a professional course comes to three millions!!! Is not it huge amount that needed to get a white collar job?

This is only for an average institute. Cost is much higher in elite and renowned institutes. However, I am calculating all costs on an average basis.

Compensation for white collar job is not enough.

Unbelievable? Never calculated? Never even thought?

Now think for a moment.

How much will you get in return in a white collar job??

According to a labor survey conducted by Government of India, only twenty-five percent of the educated engineers and fifteen percent of Management and finance graduates are posted well. So a fare chance of getting a white collar job is twenty percent on an average or only one among five graduates.

If you are lucky enough to get a white collar job and pay package, how much will it be? Normally it will be rupees three to five hundred thousands per Annam. Only very few lucky persons can manage a pay package over half a million.

The pay package of half a million comes to four hundred thousands after paying income tax.

if you would simply put that three millions (you have invested in education) on interest you could earn any thing between three to four hundred thousands per annum. This money is equal to your pay package ina white collar job. Simple calculation shows that either white collars are working free or against a small compensation.

More pain

Generally the employers put their employees far from their own native places. Cost of living in those places are generally higher than that of their native places. This is an added disadvantage.

They worked hard in their schools, got good grade. They worked hard to get admission into a good institute; they worked very hard again in the institutes to get good grades and to get a chance in campus placement.After all, they get a white collar job.

They are still working very hard to maintain their white collar job and to please and impress their bosses.They are working hard for a hike, increase or promotion.They think that they are getting good remuneration.

General people envy their salaries or pay packets. However, who are earning actually? Who are the gainers? Obviously the employers, the promoters and business owners and in turn the stock holders but not the white collars.The owners of educational institutes too have the last laugh.

White collars are the biggest losers in the industry and business. People believe that they are smart. They themselves, their parents, family, friends and the society at large think them smart. Of course, they are smart in appearance, in education, in dress-up, in lifestyle and of course in their work (Without that employers will not continue them in the job).

Think! Think again!! Before reading the next Para.

They are not financially smart.

I have discussed and calculated all these in Indian context. However, scenes are not different in America, Europe, Canada, Japan, Australia or in some other Asian countries. Pay packages of white collars are higher than India in many countries but cost of education is also substantially high. Most of the white collars are the biggest losers whether be Americans, Europeans, Australians or Asians. Do you like to rush for a white collar job?

Can they ever know it?

They will likely to admit their children again into those schools and institutes dreaming about a  white collar job for them. They consider getting federal student loan or to refinance bad credit. This has become their destine. Only a few financially smart can get rid of this vicious circle. They will learn the art of investing and enjoy the fruits of it.

Updation on 9th june 08:

I saw yesterday in Suze Orman Show:

An American woman is earning $69000 per annum in a white collar job. She asked Suze that she could not save anything out of that because she had a student loan of $ 200,000. It was not specified in the show how much has she repaid and how much she or her parents expended for her. She was asking about federal student loan consolidation, best consolidation loan student and refinance with bad credit despite of having a white collar job.

How many people are lucky enough to earn $69000 even in the US? Yet can not save anything!!

Think again!

N. B. The globe was not started facing recession when this hub was written. Now new white collar jobs are almost vanished. Pay packages are drying. What will they do who has not yet get a campus placement for a white collar job? How can they repay their loan?

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