It’s no secret that life in a big city is expensive. Big city life is marked by high rent, expensive dinners and drinks out, Ubers when you don’t want to take public transportation, and lots of entertainment options that may cost a pretty penny to access.
Over the past year, I’ve spent my first year in Chicago and I’ve learned a lot about how to live here on a budget. I’ve been mindful of where I spend which has helped me get smart about things that are worth splurging on and things that I can cut corners on.
My budget is $2,358 per month which is $28,300 over a full year. In addition to the individual categories listed below, I also include $1,000 in my total budget for lumpy expenses like a vacation, new phone, etc. For the months that I was living in Chicago (I moved in March), I was either just under or just over my budget.
Housing
Surprisingly, Chicago is a relatively affordable place to live. The rent is considerably cheaper than notoriously expensive cities like New York and San Francisco. It actually sits right around the national average.
The average rent in Chicago is $1,500 for a one-bedroom and $1,800 for a two-bedroom unit. Compare this to the national average which is $1,600 for a one-bedroom and $1,800 for a two-bedroom unit.
I live in a two-bedroom apartment with a roommate, so my rent reflects that split. Living with a roommate is one of my best tips for saving on rent in the city. Instead of paying an average of $1,500 for a one-bedroom, I’m saving hundreds of dollars every month by splitting the rent.
Another tip is to consider neighborhoods that are slightly farther out from the city center. My neighborhood is about 30 minutes away from the Loop by train which makes it cheaper than other neighborhoods that are closer, but it’s still a fun and exciting place to live.
Food
I have two places where I budget for food: Groceries and Eat Out and Drinks.
I usually spend an average of $180 on groceries each month. This is about $40-50 a week. I save on groceries by splitting food with my roommate, cooking throughout the week, making meals with fresh ingredients rather than buying frozen foods, and shopping at Walmart.
Eating out usually comes in around $300 each month. This is a bit higher than I anticipated when moving to the city. I tend to treat myself to a drink with my meals and I go to one or two nice restaurants every month. I’ve had meals that have cost me upwards of $50 each! I think the high expense is worth it because there is great food in Chicago, and I’d like to take advantage of it while I live here!
Transportation
Transportation is another main area where I make conscious decisions to help me maintain a low cost of living. I do not own a car. Rather, I rely on public transportation, Uber, and my own two feet to get around.
In Chicago, a monthly transportation pass is $100. My company covers 60% of this which is a great way that I save on public transport. Generally, I only take Ubers if I am going somewhere alone at night or going somewhere that is not accessible by public transportation.
With a transportation budget of $100, I am saving hundreds that I would otherwise be spending on a car payment, car insurance, gas, and maintenance. I like to think that the money I save on transportation makes up for the extra that I spend on rent. If I lived in a less expensive place, I likely wouldn’t have access to as good a transportation system which would make having a car necessary.
Entertainment
Chicago has a lot of great entertainment options, both free and paid. I’ve gone to a Cub’s game, farmer’s markets, sightseeing, and more. During a typical weekend, my friends and I take one or two long walks around our neighborhood and try to either explore another neighborhood or go to an event near us.
During the weekdays, I am more of a homebody and watch my weekly Bachelor episode and any other show that happens to be on.
Overall, I try to keep my entertainment expenses low since there’s a lot of low cost options for me!
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