- Samir Hussein/Getty Images
- The world’s billionaires view money differently than the average person – in more ways than one.
- The typical billionaire could easily afford to spend $80 million each year, while most Americans earn less than $60,000.
- We crunched the numbers and found the value of $1 for the average American equates to $1,355 for the typical billionaire.
Billionaires are unfathomably rich in the eyes of the average person.
For the typical billionaire, a massive purchase – think: a brand-new luxury car, a once-in-a-lifetime vacation, or pricey college tuition – is just a drop in the bucket.
The median household income in the US is $59,039 a year, according to the U.S. Census Bureau. With only about 2,000 billionaires worldwide, it’s difficult for the rest of us to understand the power wielded by a 10-figure net worth.
Business Insider crunched the numbers to see how the spending power of the world’s billionaires and average people compares on a dollar-to-dollar basis.
At that rate, the value of $1 to the average person is the same as $1,355 to a billionaire. That means the stomach pinch you feel when you drop $100 on something is how a billionaire feels when they spend $135,500.
Below, check out the real cost of 12 purchases, and the relative “cost” for someone with a $2 billion fortune.
Dinner for two at Masa in NYC
- Noam Galai/Getty Images for NYCWFF
Actual cost: $1,190
Relative cost: $0.88
Trip to Bali (per person, including flights and hotels)
Actual cost: $1,500
Relative cost: $1.11
One week in a suite at the Bellagio in Las Vegas
- Joseph Sohm/Shutterstock
Actual cost: $3,360
Relative cost: $2.48
Annual average household food spend in the US
- Scott Olson/Getty Images
Actual cost: $7,203
Relative cost: $5.32
First class, roundtrip ticket (Etihad Airways, NYC to Sydney, Australia)
- REUTERS/Arnd Wiegmann
Actual cost: $24,017
Relative cost: $17.72
Annual rent for a Manhattan apartment ($3,400/month)
- Sarah Jacobs
Actual cost: $40,800
Relative cost: $30.11
Down payment on a $256,000 house (US median home price)
- Justin Sullivan / Getty Images
Actual cost: $51,200
Relative cost: $37.78
One year at Harvard (including tuition, room/board, and fees)
Actual cost: $63,025
Relative cost: $46.51
Private jet rental (roundtrip, cross-country flight)
- Mikhail St / Shutterstock
Actual cost: $90,000
Relative cost: $66.42
New, fully-loaded Range Rover
- Jaguar Land Rover
Actual cost: $104,850
Relative cost: $77.38
New Tesla Model X P100D with Ludicrous Mode
- Justin Sullivan/Getty Images
Actual cost: $140,000
Relative cost: $103.32
Down payment on $3.5 million mansion in Malibu, California
- Altitude Images/Shutterstock
Actual cost: $699,300
Relative cost: $516.07