What do YOU think is middle class income in Chicago? (car insurance, student loans)

[ChiGuy2.5]

Originally Posted by marothisu

No kidding. As a single adult, $81K even in Chicago is solidly middle class - a good amount above lower middle class. Maybe he thinks he lives like a lower middle class person because of how much disposable income he has after everything but that's his own problem, which he said he chooses to do. $81K is a good salary for a single person in Chicago

Originally Posted by Ace Rothstein

As others have pointed out, this is a ridiculous statement.

We are still talking about in Chicago proper, correct? I think the wide array of salaries throughout the city and high COL make $80K seem pretty tiny in comparison. Just my $0.2.

[Vlajos]

Originally Posted by ChiGuy2.5

We are still talking about in Chicago proper, correct? I think the wide array of salaries throughout the city and high COL make $80K seem pretty tiny in comparison. Just my $0.2.

I find Chicago to be rather affordable for a large city.

[marothisu]

Originally Posted by ChiGuy2.5

We are still talking about in Chicago proper, correct? I think the wide array of salaries throughout the city and high COL make $80K seem pretty tiny in comparison. Just my $0.2.

I've lived off that salary in downtown Chicago in a high rise while being able to go out to nice restaurants and take international vacations. No idea what you're talking about that it's lower middle class. It's absolutely crazy to think that anybody would think that. I think your problem is how much you spend and set aside and perhaps that makes you feel like you are because of the amount of disposable income you have. However, $81K? You have to be kidding me.

Pretend you live in Lakeview in a $1200/month 1 bedroom apartment, have a car that you pay $125/month in insurance and gas, and $300/month in a car payment. You also use CTA and pay $100/month for unlimited use and pay $200/month in groceries. You also have a small debt payment of $100/month as well as $100 for cell phone and pay another $100/month for internet and TV. Then another $100 for parking let's say. All together, that is $2325/month. With $81K/year you'll be netting $4000-$4500/month even after 401K, stock option, taxes, etc if you aren't setting aside something like 20% for 401K.. and this is me speaking from personal experience at that salary while putting a respectable amount away to 401K and purchasing a small amount of stock every paycheck.

So you're left with $1675 - $2175/month, which is $20,100- $26,100 per year in disposable income, which is about as much as a doorman in Chicago may make in an entire year pre-tax. Even if you set aside $1000/month for savings and retirement, that leaves you with $675 - $1175/month after your rent, debt payment, all car costs including parking, public transit, tv, internet, cell phone, and groceries. Pretend every work day you spend $10 on lunch (5X/week), then that's another $200-$250 per month which would leave you with something like $450 - $900 per month even after putting aside $1000/month to savings. If you cook at home with those groceries, but go out twice a week to dinner and spend $40 each time, you'll still have money left over even at the low end of that estimate every month (which again, includes $1000/month set aside to savings).

Please tell me how in the world that is lower middle class. The problem is not your salary - in no way is that lower middle class. You'd have to be nuts to think that as a single person even living in downtown Chicago as long as you don't have a ridiculous amount of debt owed every month.


Also, Chicago's COL is not that expensive compared to other cities. It's on par with Seattle's.

[Ace Rothstein]

Originally Posted by ChiGuy2.5

We are still talking about in Chicago proper, correct? I think the wide array of salaries throughout the city and high COL make $80K seem pretty tiny in comparison. Just my $0.2.

$80k for a single person in Chicago? You should have about $4k/month to spend after taxes. How is that lower middle class? You can afford a nice one bedroom in any neighborhood in the city and still have $2k+ left every month.

[ChiGuy2.5]

I don't see middle class citizens as having to sacrifice much. I do have disposable income to throw around but I still have to budget. I suppose I view middle class differently than all of you. IMO middle class citizens can enjoy the finer things in life while saving. I cannot yet do that. I do not have any debt either so I am probably better off than most "middle" class citizens.

[Vlajos]

Originally Posted by marothisu

Also, Chicago's COL is not that expensive compared to other cities. It's on par with Seattle's.

I'm looking at some Moody's economic research and it shows Seattle's cost of living to be 121% of the national average and Chicago's to be 99%.

[ChiGuy2.5]

Originally Posted by Ace Rothstein

$80k for a single person in Chicago? You should have about $4k/month to spend after taxes. How is that lower middle class? You can afford a nice one bedroom in any neighborhood in the city and still have $2k+ left every month.

Nobody should ever spend half of their take home on rent. That is only for a 1 bedroom too, somewhere there has to be a sacrifice there whether its location or choosing a studio vs. 1 bed.

[marothisu]

Originally Posted by Vlajos

I'm looking at some Moody's economic research and it shows Seattle's cost of living to be 121% of the national average and Chicago's to be 99%.

Yeah so according to that, we're even cheaper (by a little bit) than Seattle. Sorry ChiGuy, but I've made that salary before in Chicago while being able to go on international vacations, nice restaurants/bars, concerts, new clothing, etc still with money to save left over at the end.

As you said, it's a choice for what you're spending, but if you're spending and saving a lot - most people aren't like you. The fact is that salary is SOLIDLY middle class for a single individual even living in Chicago proper. If that were me, I'd be taking a long, hard look at my spending habits and seeing what gives.

[Ace Rothstein]

Originally Posted by ChiGuy2.5

Nobody should ever spend half of their take home on rent. That is only for a 1 bedroom too, somewhere there has to be a sacrifice there whether its location or choosing a studio vs. 1 bed.

That wasn't supposed to just be rent. That was supposed to include utilities and phone/internet.

When I think of a lower middle class person, I think of someone who maybe can take a vacation every few years and who rarely dines out. They have a comfortable life than lower class folks but they are bringing their lunch to work ever day, can't afford to take taxis, don't own a car or own an older model, and aren't able to save much for retirement.

[Ace Rothstein]

Originally Posted by ChiGuy2.5

I don't see middle class citizens as having to sacrifice much. I do have disposable income to throw around but I still have to budget. I suppose I view middle class differently than all of you. IMO middle class citizens can enjoy the finer things in life while saving. I cannot yet do that. I do not have any debt either so I am probably better off than most "middle" class citizens.

Then you should re-examine how you are spending your money. How much are you spending on your rent? How often are you eating out every week and what type of establishments are you visiting? Do you take the el or taxis when you go places?