Barack Obama’s net worth has seen a huge rise between the time he was a senator and the time he has been president of the United States. Within the space of 10 years, his net worth has seen over 400% increase with his net worth as of 2015 being estimated at $12.2 Million up from $1.3 million in 2007 when he was elected.
Barack Obama Net Worth – $70 million
Birth Name – Barack Hussein Obama II
Date of birth – August 4, 1961
Zodiac Sign – Leo
Birth Place – Honolulu, Hawaii, U.S.
Nationality – American
Height – 6′ 1″
Profession – Law professor, Politician, Lawyer, Author
The maths for his drastic net worth increase will not quite add up if you are to consider that every US president is paid an annual salary of $400,000, this cannot explain the huge leap in wealth. So how does someone getting paid 400 thousand dollars a year end up being worth 12.2 million in 8 years?
Well here is the breakdown leading to the final estimation of his net worth.
In 2004, Obama was making money off two salaries he was earning from being the Senator of Illinois as well as teaching as a lecturer at the University of Chicago Law School. He was earning a salary of $80,287 from the State Senate Job and 32,144 from the University Lecturing position. For both jobs, he has a retirement plan of about 100,000 dollars.
In 2005, Obama got an advance payment on a book deal to write the book “Audacity of Hope” this advancement was part of the royalties he was to be paid for the book once it starts making sales.
The Publishers were sure that it would succeed given the success of his first book, “Dreams of my father which sold out after he gave a Key Note address which propelled him to celebrity status in 2004 and that book sold out.
Random House decided to republish the book that was written in 1995 now that they realized an opportunity to make more sales riding on the celebrity status of their author. In the same year he received more royalties from Random house for the book written in 1995, the royalties totaled over 1 million dollars.
2006 was a campaign year and even though a lot of money must have gone towards his campaign, he also invested a lot of the money he made off the royalties in treasury bills worth an estimated 1 million dollars.
When Obama wins the presidential elections in 2007 he is even a bigger celebrity, his books were hungrily grabbed off the shelves and he was making more money off them. He also invested more money that year into an education fund for both his daughters worth 100,000 dollars.
Now as president, there is the known source of income for being the president of the U.S which entitles him to $400,000 a year, along with $50,000 expense account and $19,000 for entertainment and another tax-free $100,000 for travel.
By the time Barack Obama was sworn into the presidency, he had investments in treasury bills worth between 1.1 million and 5.1 million dollars.
In 2009 because of his ideology as President of the United States with a focus on dialogue as opposed to military interventions, Barrack Obama won the Nobel Peace prize which comes with a cash reward of 1.4 million dollars although he donated this to different charities. It is a noble thing to do but considering he had money growing in his investments, he could afford to do that.
Although Presidents are expected to declare their wealth every year along with their sources of income, experts say it is still hard to get an exact overview of their net worth since the declarations are not as specific as you would expect so even when Obama declared his wealth in 2015, the estimates came down to roughly $7 million dollars but Celebrity news estimates the true net worth to be at $70 million.
It is clear that the major part of Barack Obama’s net worth is as a result of wise investments in treasury bills and royalties from his book sales which shot up from the time he started campaigning for the presidency and through his term in office. He also has a comfortable retirement fund not just from being the president but also for the jobs he held before that.
Obama is also linked to the purchase of prime property in Hawaii which is the place he calls home with an estimated value in the millions of dollars which will increase his net worth along with a 3rd book released after his term in office expires.