The Obamas are worth 30 times more than when they entered the White House in 2008 — here's how they spend their millions

Hillary Hoffower
May 6, 2020, 4:17 PM

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The Obamas reportedly purchased a house on Martha's Vineyard listed for nearly $12 million.

Pool/Getty Images

Barack and Michelle Obama are hosting three virtual graduation events for the Class of 2020.
Barack's net worth is $40 million, according to a 2019 GoBankingRates estimate.
Aside from the six-figure pension he receives as a former president, Obama has made millions from speaking engagements and his best-selling books.
Former First Lady Michelle Obama's memoir "Becoming" was the top-selling book of 2018.
While Obama spends his money in various ways, he loves to donate to charity and take family vacations.
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Former President Barack Obama and former First Lady Michelle Obama are hosting three virtual graduation events for the millions of students who had their graduation canceled due to the coronavirus pandemic.

The first two events, on May 16, will celebrate graduates of historically black colleges and universities (HBCUs) and high school students in collaboration with the Lebron James Family Foundation. The last event, on June 6, will feature the Obamas and a star-studded cast of other prominent political figures and celebrities hosted in partnership with YouTube.

The Obamas are a busy couple, even when they're not giving virtual commencement speeches. From speaking at events around the world to writing memoirs and signing a massive production deal with Netflix, the Obamas' life after the White House has been full and very lucrative.

For her part, Michelle Obama's memoir "Becoming" was published in November 2018 and became the year's No. 1 best-selling book.

These endeavors - along with the six-figure pension all former presidents receive - have significantly contributed to the Obamas' net worth, which is at least $40 million, according to a 2018 GoBankingRates estimate. The New York Post recently pegged their fortune much higher, at $135 million.

From philanthropic efforts to vacationing where the sun shines to making long-term investments in his daughters' education, here's how the Obamas spend their fortune.

The Obamas entered the White House with a $1.3 million net worth in 2008. That has since grown to at least $40 million, according to a 2018 estimation.

Source: American University, CNN Money, GoBankingRates

From 2005 (when Barack Obama joined the US Senate) to 2016, the Obamas earned a total of $20.5 million from his government salary, book royalties, investment income, and Michelle Obama's income from her job at University of Chicago Hospitals before she became the first lady.

Chip Somodevilla / Getty Images

Source: Forbes

Obama earned $400,000 a year during his eight years as president, and he earns an annual pension of about $200,000 as a former president.

Milos Bicanski/Getty Images

Source: GoBankingRates

The lion's share of the Obamas' fortune came from books. From 2005 to 2016, Obama earned $15.6 million in advances and royalties from his books "The Audacity of Hope" and "Of Thee I Sing: A Letter to My Daughters" and royalties for "Dreams From My Father," Forbes reported, citing tax returns and financial documents.

Solaris Images/Getty Images

Source: Forbes

But Barack's lucrative career as an author isn't over. In 2017, he and Michelle signed book deals worth at least $60 million.

Chip Somodevilla/Getty Images

Source: Business Insider

Michelle's memoir, "Becoming," was published in November 2018. As of March 2019, it had sold almost 10 million copies.

Richard Drew/AP Images

Source: Los Angeles Times

She's also sold 25 different items of merchandise related to the book, including mugs that retail for $20 and candles that retail for $35.

Chip Somodevilla / Getty Images

Source: New York Post

Books aren't the Obamas' only foray into media — in 2018 they signed a production deal with Netflix, which is estimated to be $50 million, according to The New York Post.

Mark Wilson/Getty Images

Source: New York Post

That includes a documentary film, "Becoming," accompanying Michelle's memoir. It released on May 6, 2020.

Invision/Chris Pizzello via Associated Press

Source: CNN

Since leaving office, Obama has also been paid as much as $400,000 for public speaking events.

Scott Olson/Getty Images

Source: CNBC

He reportedly earned $800,000 for two speeches to Northern Trust Corp. and the Carlyle Group and a minimum of $1.2 million for three talks to Wall Street firms in 2017.

Thibault Camus/AP Images

Source: New York Post

And Michelle reportedly rakes in $225,000 per speaking appearance.

Jonathan Bachman/Getty Images

Source: New York Post

Tickets to her 2018 book tour stop at Barclay's Center in Brooklyn ranged from $307 to $4,070.

Frank Franklin II/AP Images

Source: New York Post

All things considered, the Obamas could stand to earn as much as $242.5 million in their post-presidency life, American University estimated. But here's how they've spent their fortune so far ...

Jonathan Ernst/Reuters

Source: American University

The Obamas think long-term when it comes to their money. In 2007, Obama purchased Bright Directions age-based growth plans, each worth $50,000 to $100,000, to pay for Malia's and Sasha's college education. Malia started at Harvard in fall 2017, while Sasha started at the University of Michigan in fall 2019.

Pool/Getty Images

Source: Business Insider, Town and Country

The Obamas also made an investment in real estate. They needed a new place to live after leaving the White House, so they purchased an 8,200-square-foot mansion in Washington, DC, for $8.1 million after previously renting it.

Pool/Getty Images

Source: Washington Post

At the time of purchase, it was reportedly the second-most-expensive home in the neighborhood, right behind Jeff Bezos' former textile museum turned mansion.

Harrison Jacobs/Business Insider

Source: Washington Post

In addition to their residence in Washington, DC, the Obamas still own their home in Chicago's Hyde Park neighborhood that they bought for $1.65 million in 2005. They took out a $1.3 million mortgage on the home. It's valued at about $2.5 million.

Getty Images

Source: Chicago Tribune, Cook County Assessor's Office, Cook County Recorder of Deeds

In late 2019, the Obamas reportedly purchased a 6,892-square-foot house on Martha's Vineyard for $11.75 million. According to the report from the Vineyard Gazette, it sits on nearly 30 acres overlooking the Edgartown Great Pond.

Courtesy of LandVest

Source: Vineyard Gazette

The Obamas have also enjoyed several vacations since leaving the White House. They first headed to Southern California and eventually made their way to Necker Island, where Obama was spotted kitesurfing with Richard Branson.

Getty Images

Sources: Business Insider, Time

Obama also visited his home state of Hawaii and the island of Tetiaroa in French Polynesia, where he checked into a luxury resort called The Brando. A night there in a one-bedroom villa can cost anywhere from $3,034 to $4,318.

Chris Carlson/AP Photos

Source: Time, The Brando

The Obamas have also been spotted on David Geffen's yacht with Oprah, Tom Hanks, and Bruce Springsteen; at a wine tasting in Tuscany; and river rafting in Indonesia.

Antara Foto Agency/Reuters

Source: Business Insider, Time

The General Services Administration is required to provide a former president with enough money to cover travel and business expenses, so it's hard to say how much of their own money the Obamas spent on their vacations.

Jacquelyn Martin/AP Photos

Source: Business Insider

We do know wardrobe isn't included in the package of presidential benefits and perks.

Reuters

Source: Business Insider

While Michelle has donned expensive designer clothes like pieces from Naeem Khan and a Versace gown worth an estimated $12,000 for special events as the first lady, she's also known for her casual, relatable style. She's often been spotted in affordable brands like J. Crew, Target, and Converse.

MediaPunch/AP Photos

Source: New York Times, Business Insider

Of course, she needs the perfect outfit for date night, which she and Barack always make time for. The couple was once spotted attending a Beyoncé and Jay-Z concert.

Elise Amendola/AP Images

Source: Business Insider

Not all aspects of their lives are as lavish as their vacations. Michelle opts for a bag lunch, like turkey chili, over eating out, the former president's chief of staff told People magazine in 2017. And she's a regular at SoulCycle, which costs $36 a class or $900 for 30 classes.

Pablo Martinez Monsivais/AP Photos

Source: People

The Obamas also spend a significant amount of their money on philanthropy. From 2009 to 2015, they gave $1.1 million to charity, Forbes reported.

Pool/Getty Images

Source: Forbes

During that time frame, they donated to charities focusing on African-American causes, veterans, disaster relief, homelessness and housing, and health. More than half of their donations went to organizations for children.

Pool/Getty Images

Source: Forbes

Obama donated all the post-tax profits from his children's book, "Of Thee I Sing," to provide scholarships for children of wounded and fallen soldiers. The donations totaled $392,000 from 2009 to 2015.

Pool/Getty Images

Source: Forbes

In 2015, Obama's penultimate year in office, the Obamas donated more than $64,000, or about 15% of their income, to 34 charities, Time reported, citing tax returns.

Chip Somodevilla/Getty Images

Source: Time

But none of this includes Obama's biggest donation to date: his $1.4 million Nobel Peace Prize award in 2009, all of which he donated to multiple charities.

Pool/Getty Images

Source: Business Insider

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