United States Presidential candidate, Barack Obama, and his wife Michelle have made quite a financial “come up” in the past few years. From 2000 to 2004, their average adjusted gross income, as reported on their federal income tax returns, was approximately $210,000. This figure skyrocketed more than 1000% to an amazing $2,245,000 between 2005 and 2008.

How did the Obama’s make their money?
From 2000 to 2004, Barack was an Illinois State Senator making approximately $60,000 a year and earned nearly $32,000 a year in his part-time hustle as a Senior Lecturer for the University of Chicago School of Law. His earnings of $92,000, accounted for 44% of their average adjusted gross income, and Michelle, who worked as an Executive Director of Community Affairs for the University of Chicago Hospitals, earned roughly $120,000 or 57% of their remaining average adjusted gross income. 

In 2005, Barack was elected to the U.S. Senate and nearly doubled his salary to roughly $165,000 a year, for politicking in Washington D.C. During that same year Michelle, was Vice President of the University of Chicago Hospitals, and earned $265,000 a year for her expertise regarding community affairs. 

Though the six figure salaries can make life sweet, the bottom line is that most of their wealth was generated from Barack’s recent 2.2 million combined book sales of Dreams of My Father, and The Audacity of Hope, which became a New York Times Best Seller. As a result of his newfound publishing success, he stacked a jaw-dropping $3.9 million from book sales alone in 2007. Did I mention that was pure profit? Now that’s hustln! 

How do the Obama’s spend their money?
The Obama’s purchased their plush $1.65 million home three years ago in the Kenwood area of Chicago. Reportedly, they spend on average about $35,000 annually on household expenses, including piano and dance lessons, and child care for their two daughters Malia, age nine, and Natasha, age six. 

According to Business Week, in April of 2007, Barack was driving a Canadian-built Chrysler 300C sedan and his campaign vehicle was a flex-fuel GMC Yukon. 

How do the Obama’s invest their money?
According to Barack Obama’s 2007 Senate Financial Disclosure Report, he and Michelle invest their wealth fairly conservatively. The bulk of their wealth, $1.5 million, was invested in cash or short-term money market accounts. Barack contributed nearly $50,000 to his Illinois State Employee retirement plan last year. Michelle has about $75,000 in her 403(b) retirement account and together they have a total of $155,000 invested in various mutual funds that are comprised of bonds (roughly 60%) and stocks (roughly 35%). 

That’s low risk investing, considering they still have about another 20 years before retirement. I wonder if they know something about the future of the American economy that the rest of us don’t? 

The Obama’s have also invested approximately $750,000 in low risk U.S. Treasury Notes. In 2007, they stashed roughly $175,000 into two 529 College Saving Plans for each of their daughters. 

How did the Obama’s get out of debt?
More than four years ago, Barack and Michelle were drowning in debt. Combined, they had approximately $120,000 in student loans they took out to pay for law school. 

Earlier this year, Michelle was campaigning for Obama in Zanesville, Ohio, where she talked to a group of women about managing the family and Obama’s political success.  

This is what she told the group about the family’s past debt situation:

”The only reason we’re not in that position is that Barack wrote two best-selling books… It was like Jack and his magic beans. But up until a few years ago, we were struggling to figure out how we would save for our kids.”

Fortunately, their biggest financial worry now is deciding what to do with all the money they’re “stackin.” The Obama’s are practically debt free! Their house and cars are all paid for, as public records show they have reported zero liabilities over $10,000.
 
How much are the Obama’s worth?


*Assets minus Liabilites

From taking out loans for law school to working for non-profit organizations, America’s potential presidential family has truly demonstrated what it takes to achieve financial success if you’re black in Capitalist America – Invest in education, Pursue your passion and Keep “grindin!” 

Create Wealth, Enjoy Life!
James "Bird" Guess
President & Founder

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Sources: www.barckobama.com, www.opensecrets.org., CNN Money Magazine