What Salary Is Considered Rich In Chicago?

How Much Salary Makes You Rich In Chicago?

Understanding What It Means To Be Wealthy In Chicago

Chicago is among the largest, most vibrant cities in the United States—from its fabulous architecture down to the pizza and top-class entertainment—just about all. Having said that, though, Chicago, being a huge city, may just be too costly. Ever wonder how much it takes to be considered "rich" in Chicago? You are not alone.
Many would think that bringing in six figures in salary automatically makes one wealthy. Or does it? Let's break down how much one really needs to bring in to live it up in style in the Windy City.

What Does It Mean To Be Rich?

Before we dive into the numbers, understand that being rich is more than a fat paycheck: it's financial freedom, being able to afford a comfortable lifestyle, travel, eating out in fancy restaurants, and saving up for the future without bill anxieties.

It is also all depends on the location and how one spends their money. The definition of "rich," therefore, changes with personal lifestyle and financial habits.

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How Much Money Do You Need To Be Rich In Chicago?

In Chicago, the top 1% make at least $650,000 in a year. That's serious money. They can afford luxury high-rise apartments, private school tuitions, and vacations to exotic locales.

You don't have to be in the top 1% to be considered rich. Generally speaking, a salary of $250,000 or more will suffice to enjoy an upscale lifestyle in Chicago. You can afford a comfortable home, go out to upscale restaurants regularly, and take vacations without financial stress.

Making approximately $500,000 a year puts you well into the "rich" category, affording the chance to stay in an upscale neighborhood, drive an upscale car, and enjoy truly upscale experiences. Of course, even at this level, there's always a struggle against the taxes and cost of living to stay on top of it all, but wise money management will keep it coming in.

Living Comfortably Versus Being Wealthy 

In the city of Chicago, the average household earns about $65,000 annually. Accordingly, you're already doing better than the majority of people in the city if you're earning $100,000. However, that does not imply that you feel wealthy. 

You may still budget at $100,000 a year and be comfortable. Transportation, entertainment, and rent can mount up. Additionally, it might not seem like a very extravagant paycheck if you have additional expenses or school loans. 

You can afford a really lovely home, go out to nice restaurants on a regular basis, and save money for retirement or other major expenditures when your income reaches between $150,000 and $200,000. At around $250,000 for the Chicago area, financial freedom—the state in which one can genuinely and honestly state that they no longer think about money—is really beginning to take shape.

Where You Live In Chicago Makes A Big Difference

Chicago has many different neighborhoods, and in which you choose to live can dramatically change how far your salary will go.
It is very expensive to live in downtown areas such as Gold Coast, River North, or the Loop. The rent for a two-bedroom apartment is over $4,000 a month, and buying a condo can cost millions. You'll need a very high salary—at least $250,000 or more—to live comfortably in these areas.

In contrast, neighborhoods such as Logan Square, Pilsen, and Humboldt Park are a bit more affordable. You will be able to enjoy a good lifestyle in these areas with a salary between $75,000 and $100,000—even though you may not be able to enjoy a truly luxurious lifestyle.

For even more affordability, many people choose to live in the suburbs of the city, which allows them to work within the city and its opportunities while saving on housing.

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How Taxes Affect Your Wealth

But basically, the main pain in the ass about being rich in Chicago has got to be taxes. Illinois boasts one of the highest tax burdens in the nation, which definitely affects how much money one actually brings home.

First, there's the state income tax, which is 4.95%. While that might sound low compared with other states, Illinois also has some of the highest property taxes in the U.S. If you own a home, a large portion of your income will go toward property taxes alone.

Then, of course, there's the sales tax, which in Chicago weighs in at an astonishing 10.25%. That means just about anything you buy—groceries, dining out, shopping—carries with it a big tax bill.

When you add all of these taxes together, a salary of $250,000 doesn't go as far as it might in other states with lower taxes.

Can You Feel Rich On $100,000 A Year?

Most people think that earning six figures automatically means a life of luxury, but in a city like Chicago, $100,000 is more of a middle-class salary than a rich one.

At this income level, you can get a decent apartment, eat out occasionally, and enjoy some form of entertainment; however, the expenses will again have to be carefully considered to accommodate other burdens such as student loans, car payments, or others.

If one wants to feel truly rich in Chicago, it all starts with financial freedom at or above $250,000. This is because one can afford to reside in a posh neighborhood, eat at the best restaurants, travel more frequently, and save for the future without stress.

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How To Increase Your Income And Build Wealth In Chicago

The main point in going from middle class to rich in Chicago is going to be more than one well-paying job. The rich make much of their income through investments, real estate, or opening their own businesses.

Real estate investment is one of the best ways to ensure wealth accumulation in Chicago. While this sounds competitive, owning a rental property or a house that has to be flipped back can guarantee more income on an individual's balance sheet. Starting a business is another way of increasing income.

Many entrepreneurs in Chicago find success in tech, finance, or service-based industries. Whether it's launching a consulting firm or opening a Deep Cleaning Chicago business, entrepreneurship offers unlimited earning potential.

How Much Salary Do You Need To Be Rich In Chicago?

There is no exact amount, as it changes for each person depending on spending and lifestyle. Earning over $650,000 per year will classify you as super-wealthy and put you in the top 1% of the class. Earners between $250,000 and $500,000,000 could live a luxurious life. The money earned between $100,000 and $200,000 is good, but you probably don't feel really rich. If you make less than $65,000, you'll be living in the middle of the city, so plan ahead. In the end, what makes someone rich is not how much money they make but how well they handle the money they do have.

It does little to say then that low wage-earners feel rich as they know the secret to staying within their budgets, and others with incomes of 5 million dollars yearly worry about the availability of cash; smart money handling is everything that makes the difference between making money in Chicago or any place for that matter. It would also always be better to live life and enjoy it completely without holding oneself back by whatever standard your income.