We want to think that billionaires are just like us — they live in homes, go grocery shopping and plan family events. Or do they? Maybe they just spend a ton of money paying other people to do those things for them at a scale the average American couldn’t hope to dream of. Jeff Bezos’ recent $50 million wedding comes to mind.
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When you have more money than you could spend in multiple lifetimes, how do you spend your money? I asked ChatGPT to break down how billionaires actually spend their money.
It’s Not Just Yachts and Jets
ChatGPT had my number when it suggested, “When you think of billionaires, you probably picture gold-plated superyachts, sprawling estates and private jets.” Yep, ya got me. That is pretty much how I envision the billionaire life.
And while, yes, many of them do enjoy the finer and most expensive things money can buy, ChatGPT suggested that their spending “goes far beyond luxury” and some of their biggest expenses might surprise you.
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Real Estate — Lots of It
Real estate is a big billionaire go-to. It’s true that billionaires tend to buy mansions, but according to ChatGPT, they don’t stop at one. “They buy five, in multiple countries.” That’s because real estate is an excellent way to “store wealth, reduce taxes and signal status.”
Bezos reportedly owns properties in Washington, D.C.; Beverly Hills, California; New York City, and Maui, Hawaii. Oprah Winfrey owns at least a dozen properties across the U.S.
However, billionaires don’t stop at mere homes. “They buy entire islands or massive ranches,” ChatGPT said. And those properties don’t run themselves — they require constant upkeep, security and sometimes even staff, such as private chefs and year-round caretakers.
Private Travel: Jets, Helicopters and More
As GOBankingRates has reported before, many billionaires never set foot in a commercial airport because they have access to private jets and helicopters. While the costs to ride, own and operate these are in the millions, astronomical to the average American, when your income has nine zeroes behind it, it’s a lot like you and me buying a brand-new car.
ChatGPT insisted that the billionaire jet-set isn’t doing this just for luxury. “Some use jets as mobile offices, complete with conference tables, beds, and full Wi-Fi. It’s the ultimate flex and productivity tool.” If you say so, ChatGPT.
Investments in Startups and Private Equity
You’d think billionaires would be satisfied with having even $1 billion, much less multiple billions, but nope, billionaires “put a surprising amount of money back into the economy–not through spending, but investing,” ChatGPT pointed out.
They fund early-stage startups, venture capital firms and private equity deals that the average person can’t access. It’s a way for them to fund ideas and products that align with their values and to see huge returns.
“Think Jeff Bezos investing early in Airbnb and Google. These moves are both passion plays and wealth multipliers,” ChatGPT wrote.
Philanthropy
Billionaires also have the money to give back, and many of them do. ChatGPT suggested that while it’s easy to be skeptical, “philanthropy is a major area of spending for billionaires.”
Warren Buffett has pledged to give away over 99% of his wealth. Bezos’ ex-wife, MacKenzie Scott, has donated billions to education, racial equity and public health, often quietly and without strings attached.
Some of the wealthiest also start foundations — think the Bill and Melinda Gates Foundation, for example — which also come with major administrative and operational costs. They do this both for the tax benefits, but also, ChatGPT said, “for many, it’s also a legacy play–they want to be remembered for more than just their money.”
Staffing Up Their Lives
Since billionaires run their personal lives like businesses, they often employ teams of staff: chefs, personal assistants, drivers, house managers, stylists and private security. Even a single home can require a dozen people to run it.
This means that billionaires are paying for “lifestyle management,” some of them even outsourcing “every task you can imagine–from buying clothes and booking vacations to curating art or planning family events.”
For the average person who has to do their own shopping, cooking, cleaning and entertaining, it can be hard to imagine the freedom and privilege of how billionaires can afford to maximize “time, comfort and control.”
ChatGPT said, “After all, time is the one thing even billionaires can’t buy more of–so they pay others to protect theirs.”
Luxury That’s Under the Radar
While some billionaires do flaunt their wealth, others — like Mark Zuckerberg or Buffett — are known for low-key personal styles, ChatGPT said. That doesn’t mean they’re not spending. It just means their luxuries are more discreet.
ChatGPT suggested their expenditures fall more into “ultra-high-end health care, private wellness retreats, bespoke nutrition plans, rare books, or elite memberships (like yacht clubs or invitation-only networking groups).” The upgraded version of all the services the average person uses on a financial scale beyond your reckoning.
Children’s Futures (and Fortunes)
Billionaires with children also invest in them. “That means elite education (often starting in preschool), legacy admissions to Ivy League schools, personal tutors, and trust funds worth millions,” ChatGPT wrote.
They may also set up family offices private firms dedicated to managing the family’s wealth across generations, and invite their kids into their family businesses.
Billionaire Spending: Flashy or Fascinating?
Undeniably, billionaires spend their money on luxuries, but ChatGPT tried to convince me that “much of their spending is also structured, strategic, and tax-savvy.” That may be so, but it doesn’t help the average person. The truth is, it’s hard to understand such a grand scale of spending, especially in a world with such high wealth inequality, where some people don’t even earn enough income to buy groceries without government assistance.
While we can appreciate the ways billionaires give back, fund projects and make big moves, for the average American, it can be hard to regard billionaire spending with anything but fascination and envy.
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This article originally appeared on GOBankingRates.com: I Asked ChatGPT To Break Down How Billionaires Actually Spend Their Money
