The True Scale of Wealth - How the Top 0.001% Spend Their Billions

to be considered in the top one percent of net worth in the world you need at least eight hundred and seventy thousand dollars in your bank account to join the more exclusive 0.1 Club you should have a net worth that exceeds 19 million dollars quite impressive but still nothing compared to the much more Ultra exclusive society that we are here to discuss today what we are actually interested in is the lies of the point zero zero zero one percent otherwise known as billionaires billionaires are a bit different than regular rich people in fact they are several orders of magnitude different in terms of their wealth influence and Power it really just comes down to perspective as there are 1 000 million in one billion here is an example of the literal difference between a million dollars and a billion dollars if you stacked up one million dollars in one hundred dollar bills it would reach about three feet tall or the height of a kitchen counter meanwhile one billion dollars stacked up in 100 bills reaches over a half mile tall Which is higher than the world's tallest building how many of these billionaires currently exist according to the Forbes billionaire list there are roughly 2 700 billionaires across the globe today another remarkable fact the top 400 richest Americans own more than the bottom sixty percent of all Americans 400 individuals own more assets than the poorest 200 million Americans combined but we're not here to talk about inequalities today instead we want to take a look into the lives of the ultra rich and reveal the true scale of their immense wealth in a way that you have never thought of before [Music] you might think that you understand what it means to be rich it probably entails someone who owns a huge mansion on a sprawling estate with a garage full of luxury cars they go out to fancy restaurants and clubs and Charter their private jet to Exotic locations across the globe but that portrait of a rich person really depends on the level of wealth in question a million ain't worth what it used to be and therefore the average millionaire is probably not as wealthy as you think for instance a private jet usually costs at least two million dollars to buy and another half million for annual maintenance storage and fuel therefore we would be surprised to see anyone with a net worth of under 20 million dollars that owned their own jet but billionaires they are in a completely different stratosphere There is almost no material object that these excessively wealthy folks cannot buy there are also other hidden layers of their lifestyle that are rarely spoken about but caused a considerable amount of their resources as well for billionaires their most valuable assets turn out to be time and safety time is one of the few things that money cannot buy but there are certainly ways that billionaires have found to optimize their time through the use of their money they employ a whole support staff that provides them with time through their services so billionaires never spend time cooking cleaning or even shopping there is never any standing in line or waiting for anything all of this time saved allows them to free up their day so they could focus on the bigger picture of course this team of assistants and servants does not come cheap it is estimated that the salaries of an average Billionaire's full support staff comes out to an annual cost of one to two million dollars for safety billionaires are almost obliged to hire a private security Force since their wealth makes them a large Target for potential Danger virtually every billionaire employs a team of security Personnel to guard them 24 7. there have even been reports of them using ex-navy seals as well as sophisticated technology including robots to help keep them safe as expected all of this defense costs money it was reported that Mark Zuckerberg spends over seven million dollars on a personal security detail every year it is clear that there is quite a divide between the lifestyle of a modern millionaire versus that of a billionaire what is the true scale of wealth when it comes to billionaires then well it all comes down to context the average person Works full-time and earns about fifty thousand dollars per year they might have some savings but for this example we will assume that they have a minimum net worth outside of their annual income meanwhile most billionaires don't actually work for a salary so we will use the value of their net worth to compare them against others in this scenario then the billionaire who is worth one billion dollars is 20 000 times more wealthy than the person who earns fifty thousand dollars a year therefore from the Billionaire's perspective Everything feels like it costs about twenty thousand times less to them versus the normal person that's possible since most common luxury goods don't really get more expensive sure there are different levels of opulence which we will also speak about later on but the price of most items don't really scale past a certain point a new Ferrari is still priced at three hundred thousand dollars for both you and for Elon Musk as well even the most expensive properties and real estate don't go for much more than 200 million dollars Jeff Bezos paid 165 million dollars for his Beverly Hills mansion while the primary property for Bill Gates is estimated to be valued at just 130 million dollars of course tycoons like these likely own multiple properties across the globe that remains that the cost of most Goods don't scale to the heights of billionaires that makes their purchases 20 000 times less impactful to their wealth compared to the rest of us let's take a look at some examples of this absurd scale of excess and also examine how a Billionaire's lifestyle dwarfs even the most lavish of millionaires let's start with housing a well-off millionaire May own a large mansion in a nice gated community but a billionaire can actually buy the whole gated community in fact there have been numerous stories of billionaires scooping up a whole street so they can house their family with some extra privacy how can they justify these costs well to them a one million dollar house feels like spending just fifty dollars based on their proportion of wealth versus an average Joe of course billionaires likely own an estate worth a hundred million dollars or more as well as multiple other extremely high value properties around the world which is not what most millionaires can afford an American billionaire could own a real estate portfolio that includes a penthouse overlooking Manhattan and a state in Los Angeles a ski lodge in Aspen a beach home in the Hamptons along with some smaller properties across Europe and Asia you can quickly see that these billionaires are in a different League than regular millionaires here's another interesting fact property tax on a hundred million dollar home is likely to be one or two million dollars a year that comes out to about two to three thousand dollars per day just on taxes that is more than most people pay for their monthly rent another example we will look at is travel a millionaire can likely afford to fly first class and probably spend ten thousand dollars on a ticket for each trip to a billionaire though the cost of that ticket would feel like just 50 cents per flight so billionaires take it up a notch and go for their own private jet why go through the hassle of passing through security and waiting to board the plane when you could just drive up to the tarmac at the moment you feel like the average new jet costs about 30 million dollars which is just fifteen hundred dollars to a billionaire and is an easily Justified cost that saves some time and offers direct convenience what about hotel options for millionaires they could probably afford the best five-star hotel for their six weeks of vacation throughout the year they may even splurge on the penthouse suite for five thousand a night here and there but for a billionaire a five-star accommodation is not even a question in fact they may seek out the more rare 6 and 7 star hotels to stay at the penthouse suite is also the bare minimum as well since it would only feel like paying 25 cents a night to them at those rates they could stay 200 000 nights which comes out to 548 years so billionaires usually spend a bit more than millionaires in this case as well instead of just renting one room they rent the whole floor they may even Reserve multiple floors to allow for their staff and security to join them they could also do this for months at a time even during Peak Travel seasons how about cars a millionaire might own one or two exotic cars to use on the weekend but a billionaire likely has a garage full of them at each of their properties too that's easy to manage when a new 300K Lamborghini feels like spending 15 bucks to a billionaire there's also the topic of support staff a millionaire might splurge and hire a housekeeper or a part-time nanny but a billionaire has the means to cover virtually every part of their life with a team of professionals on the staff of an average billionaire you can usually find a housekeeping crew a private Chef possibly with a Michelin star a few live in nannies a personal driver and airline pilot multiple landscapers the previously mentioned security staff a personal trainer personal assistants and the nation's top legal team always on retainer like we mentioned earlier this team can cost up to 2 million dollars a year but that comes out to what feels like a hundred bucks annually to a billionaire there are differences in scale when it comes to the experiences between Millionaires and billionaires as well for millionaires they might get lucky and secure some backstage passes to a concert of their favorite artist but billionaires they have the resources and the clout to arrange their own private concert at the location of their choice same for sporting events instead of securing front row tickets billionaires can likely secure a connection with the team's owner and join them in their Luxury Box after entering the stadium through the players only entrance without ever waiting at all speaking of connections a major way Millionaires and billionaires differ is based on their access and ability to influence other major players in the world regular millionaires might know a few business directors and local politicians but that is nothing compared to a Billionaire's circle of acquaintances when you have a sizable amount of wealth people start seeking you out and want to listen to you it is not unusual for billionaires to be well connected with CEOs Hollywood actors sports stars Governors presidents and even royal families that also gives them the ability to access major events like the Khan film festival or to Lobby governments for regulations to be in their favor if you add up the cost of all of these extravagances it comes out to an average of a hundred and thirty four thousand dollars per day if you multiply that by 365 days that comes out to almost 49 million dollars a year at this point you might be thinking if a person has one billion dollars and spends 49 million of it a year that lifestyle will only last 20 years but that wouldn't be how a billionaire thinks if they use up 49 million in one year the remaining 951 million doesn't just sit around in their vaults instead the large majority of it is out there making even more money a Billionaire's financial advisor likely has their assets invested in a mix of stocks bonds hedge funds private Equity Real Estate and cryptocurrencies that earn them a healthy return every year in fact they just need an annual return of roughly five percent to make back the 49 million they have spent throughout the year therefore they could spend 49 million dollars every year and with the right blend of Investments generate the same amount back allowing them to live this type of Lifestyle indefinitely billionaires sure do sound like they live a dream life they can purchase an unlimited amount of material goods and get to experience events that you or I could not access even if we had the money but in reality nobody has it all billionaires can never live a normal life they can't just hop into McDonald's when they have a craving or even leave their house without being harassed they will also never know the true value of something earned when you have everything then nothing is exciting anymore billionaires even get bored they then start to look for hobbies or passions that seem ill-fated to the rest of us they go out and buy companies that have no connection to the rest of their business or fund extravagant projects like going into space a lot of billionaire Heroes live long enough to even become a villain but that's what happens when you have nothing but time and money on your hands while we shouldn't feel bad for these billionaire business people we shouldn't feel so bad about ourselves either there is something to be said about the things that money cannot buy the age-old adage of money not being able to buy happiness is still true there is a distinct difference between art that you create versus a painting that you just buy the same with memories of spending time with your parents when you were young as opposed to being raised by a nanny or the feeling of earning something after a long journey rather than taking a shortcut to quickly obtain it it turns out that we all have the ability to enjoy emotions and experiences that make life rich and fulfilling regardless of the size of our bank account at the end of the day it still comes down to perspective but having a balanced one that is not just about money can make all the difference for the non-billionaires out there what do you think about this stunning disparity of scale let us know your thoughts in the comments below also please subscribe to this channel to continue to get a fresh perspective on these business type topics we appreciate your support and would like to thank you for watching [Music]

Channel: Uncut Perspectives

Views: 123,705

Keywords: Billionaires, Billionaire lifestyle, Ultra rich, finance, business, wealth

Id: VaJq-X0vymY

Length: 15min 44sec (944 seconds)

Published: Wed Feb 22 2023