How much is $100,000 actually worth in Chicago?
CHICAGO (CBS) -- A benchmark of the American dream is making a six-figure salary, or at least it used to be. A new study by SmartAsset shows that doesn't go very far anymore, as inflation rates and the cost of living continue to go up.
Depending on where you live, you might get more bang for your buck.
Susannah Snider, Certified Financial Planner and Managing Editor of SmartAsset, joined CBS News Chicago to break down their findings and methodology. Looking at 76 of the largest U.S. cities, SmartAsset calculated take-home per paycheck for both salary and hourly jobs, after applying federal, state and local taxes. Then, using data from the Council for Community and Economic Research, factored in cost of living (housing, groceries, utilities, transportation).
So, how much is $100,000 actually worth in Chicago right now?
"Chicago ranked number 58, which is not great. That means there are a little fewer than 20 cities where $100,000 goes less far. But there's 57 cities where it actually goes further. It feels like a little bit less than $60,000. So, a pretty big difference," Snider said. Chicago's cost of living is 17.1% higher than the national average.
Which cities ranked the best?
"The number one ranked city was Memphis, Tennessee. It feels more like $86,444," Snider said. "I'd also say that we saw a lot of Texas cities do really well on this study, and I think that's largely part to the fact that it's a no income tax state, so that tax fight was a little less aggressive, but also some of those cities just had a fairly low cost of living as well."
El Paso is ranked 2 and Houston is 6. San Antonio, Fort Worth and Arlington all tied for 7. St. Louis was the closest city to Chicago to be ranked in the top 10 at 10.
Without having to move states, Snider said that the best advice, regardless of salary, is to have a good budget.
"They need to be working with a knowledgeable tax plan or a good tax software when they're filing taxes to make sure they're not overpaying," she said.
