The world's billionaires have so much money it's hard to fathom - here's how their spending compares to the rest of us

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The world's billionaires have so much money it's hard to fathom - here's how their spending compares to the rest of us

wealthy woman

Samir Hussein/Getty Images

For the world's billionaires, a trip to Bali is a drop in the bucket.

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  • 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.

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The median fortune of a Forbes list billionaire is about $2 billion. A conservative 4% annual withdrawal rate would bring their income to about $80 million a year.

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.

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Dinner for two at Masa in NYC

Dinner for two at Masa in NYC

Actual cost: $1,190

Relative cost: $0.88

Trip to Bali (per person, including flights and hotels)

Trip to Bali (per person, including flights and hotels)

Actual cost: $1,500

Relative cost: $1.11

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One week in a suite at the Bellagio in Las Vegas

One week in a suite at the Bellagio in Las Vegas

Actual cost: $3,360

Relative cost: $2.48

Annual average household food spend in the US

Annual average household food spend in the US

Actual cost: $7,203

Relative cost: $5.32

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First class, roundtrip ticket (Etihad Airways, NYC to Sydney, Australia)

First class, roundtrip ticket (Etihad Airways, NYC to Sydney, Australia)

Actual cost: $24,017

Relative cost: $17.72

Annual rent for a Manhattan apartment ($3,400/month)

Annual rent for a Manhattan apartment ($3,400/month)

Actual cost: $40,800

Relative cost: $30.11

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Down payment on a $256,000 house (US median home price)

Down payment on a $256,000 house (US median home price)

Actual cost: $51,200

Relative cost: $37.78

One year at Harvard (including tuition, room/board, and fees)

One year at Harvard (including tuition, room/board, and fees)

Actual cost: $63,025

Relative cost: $46.51

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Private jet rental (roundtrip, cross-country flight)

Private jet rental (roundtrip, cross-country flight)

Actual cost: $90,000

Relative cost: $66.42

New, fully-loaded Range Rover

New, fully-loaded Range Rover

Actual cost: $104,850

Relative cost: $77.38

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New Tesla Model X P100D with Ludicrous Mode

New Tesla Model X P100D with Ludicrous Mode

Actual cost: $140,000

Relative cost: $103.32

Down payment on $3.5 million mansion in Malibu, California

Down payment on $3.5 million mansion in Malibu, California

Actual cost: $699,300

Relative cost: $516.07

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