While some people don’t care to understand how their earnings stack up, others enjoy knowing where they stand
. Your location has a lot to do with whether or not you are considered rich.
Quartz recently published an article entitled “What you have to earn to be rich in cities across the US.” Citing information from a Brookings Institution report, the piece shows that what it takes to be considered rich in one city may not be enough to crack the top five percent in another.
At the top of the list is San Francisco. If you want to be a top-five percent earner in this city, you have to earn $423,171 per year.
As you work your way to the bottom of the list, the cutoff in Detroit (listed at number 50) is $107,521 per year.
For the sake of this article, let’s take a look at five other cities:
- New York City: $243,529 per year
- Chicago: $209,574 per year
- Las Vegas: $164,755 per year
- Philadelphia: $150,545 per year
- Cleveland: $116,034
What about the Cost of Living?
Everybody wants to make as much money as possible. However, some people neglect to consider the cost of living. For example, it costs more to live in San Francisco than Cleveland or Detroit. For this reason, your paycheck won’t go nearly as far.
Last year, NPR published an article showing how far your paycheck goes in more than 350 cities.
Remember, just because you are considered rich in your city doesn’t mean you are considered rich in others. Furthermore, the cost of living in your city will dictate how far your money takes you.