Okay, according to Zillow at this time of writing, the median price per square foot in Beverly Hills for a house is just under $1,600. With $5 million, you can probably afford a semi-luxury house in Beverly Hills at least.
However, expect to not have that much cash left over.
Here is what it is like for a net worth of $5 million:
What you can afford:
- To live anywhere
- Afford an exotic car or two easily
- Take lavish vacations once a year or twice
- Eat out everyday
- Buy high-end clothes
However…
You can most likely not:
- Buy multiple homes in the most expensive places
- Afford a few exotic cars new
- Splurge on clothes or food
You definitely cannot:
- Afford a private jet
- Afford a yacht
- Afford the nicest mansions in the most expensive areas
With the bottom three items listed above, it would take a net worth of hundreds of millions of dollars before you could comfortably afford any of those yachts, mansions, or a private jet.
$5 million can give you a life where you do not have to work a normal job, you can live a lavish life, and you can afford just about anything you wish except for those only for ultra-high net worth individuals.
However, while $5 million is considered rich for many people, lifestyles are much more different when comparing a $5 million net worth to a $100 million or $1+ billion net worth.
There is more to how you can live with having $5 million, but this is the information that came to my mind when writing this post at first.
Important:
Money goes very fast. Even $5 million. Many individuals with $5 million or more in net worth have many investments and they live off of the return. I would recommend to make investments your first priority before spending on anything that you really don’t need!
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