What do YOU think is middle class income in Chicago? (Carol Stream: hardwood floors, apartments)

[UnderTheLiveOaks]

Originally Posted by romnation

A car each, she gets her car insurance paid for by her mom, I pay mine myself. No car payments. and yes, we're young, I'm 23, freshly out of college, she's 21 and still in college.

Well, if you're committed to the cars, you're going to feel some financial sting as a result. I was your age(ish) when I moved to Chicago, swore I needed my car, felt the pinch for a while and eventually ditched it.

Keep in mind that the median income in Chicago isn't the median income on the north side. Many of your friends and neighbors to make more money than you do, and rightly so because you're just starting your career. But 23 is a GREAT age to be a little bit poor. Get smart about money in small ways. Make a budget. Scrimp where you can. You'll feel much more in control of your finances and you'll be able to afford fun things as they come. You'll just have to make choices.

I was broke at 23 and I had so much fun. Just make as few long-lasting stupid decisions as possible. Crappy credit can haunt you longer than a crap tattoo.

[emathias]

So you thought that "middle class" meant that you'd be living large right out of school?

Median family incomes don't really tell you much.

You don't say what race you are, and while that shouldn't matter, it does. I'm going to assume you're white because most transplants from Indiana are white.

According to the US Census, in 2012, for white non-hispanic people aged 15-24 who were in households they headed (meaning not a lot of 15-year olds in the sample), the median household income was about $36k/yr. But the mean was about $47k/year. That tells you there is a big split, and some people earn a lot more at that age, skewing the average vs. median.

And that spread gets worse once you get to 35 years old - after that the spread between mean and median grows from $10k/yr to $20k/yr all the way until retirement age.

Speaking of retirement age, for all households under the age of 65, the median/mean annual income for non-hispanic white people is $72k/92k/year. That's nation-wide. Chicago isn't much off the national numbers, so I guess, strictly speaking, a narrow definition of "middle class" could be white people earning between about $70k and $90k per year. By the time most white families have teens in the house, they're earning $80k to $100k per year.

Now, if we look at you as individuals instead of as a household I don't have super-granular data, but for a male in your age bracket with a 4-year degree, the average person earns just shy of $31k/year. For your girlfriend, if she has at least two years under her belt, she'd average about $19k/year at her age. That's not far off your stated earnings, and only if we consider your girlfriend to have an "associates degree." If we just say "some college, no degree," She'd be down at about $10k/year, on average.

So you guys are doing fine "for your age," as they say.

[marothisu]

I'm going to guess the lower end for an individual is probably 35k-40k and the upper end of it is probably around 125k...middle of it all for middle class is probably around $70K.

[Vlajos]

Two cars sounds absolutely unnecessary.

[Chi-town Native]

Echoing the "drop one of the cars" theme here. You live in an area with good public transportation, Divvy and car-sharing options. You can make it work, and you'll be amazed at the extra cash in your bank account every month. Looking back, consolidating to one vehicle is absolutely how my now-wife and I put together a down payment for a house.

[marothisu]

Do you drive everywhere or do you already take public transit? Cars can be expensive, especially if you don't own it. If you already take public transit, then let's say your net gain by not having a car is $150/month by kissing insurance goodbye. Then gas and you might be talking about $200/month. Do you own the car or lease/have a loan? That's even more. $200/month is still $2400/year saved

[chet everett]

Depending on how often the OP needs I car even I agree that there might be some opportunity to save some money by getting rid of a car BUT THE BIGGER ISSUES that others have touched on include fact that the data about BOTH median & mean household income really ARE NOT yardsticks of "middle class" so much as sad statement about how the MASSIVE numbers of unskilled / unemployable stuck in Chicago are huge negative against the startling high incomes of some folks with skills / connections to be VERY well compensated.

I do feel bad for the OP, especially if their GF is only earning about $20K. The fact is that HORDES of college folks spilling into Chicago there is simply MORE potential labor than can be absorbed and this really drives down wages. I also COMPLETELY sympathize with your desire to take advantage of the many nice amenities that Chicago does have to offer but the relatively high living costs are likely ONLY TO INCREASE especially as our incompetent law makers are attempting to INCREASE taxes.

If there is no way to increase the marketability you / your GF have to employers to raise your income you may want to consider living in places with lower COL. Of course it is NOT easy nor wise to relocate until you have sufficient reserve funds saved up; it might be good to try to cut back even more on your entertainment spending and put that money into savings so that you can relocate.

[Vlajos]

Chicago metro has a higher median income than the US average and cost of living is at the US average.

[chet everett]

Originally Posted by Vlajos

Chicago metro has a higher median income than the US average and cost of living is at the US average.

When you come from U.S. States with the Lowest Cost of Living -- #9 Indiana it does sort of shift one'e expectations.

Some places worth considering:

10 Cheapest US Cities |Kiplinger

[Chicago87]

I have many friends in their mid to late 20s that earn $45,000 to $65,000+ a year. The people earning $60,000+ say they feel middle class, but the people earning less than $60,000 say do not. Based on that, the middle class salary for a single individual that is in their 20s in Chicago with minimal debt and other responsibilities appears to be $60,000.