‘Rich Dad, Poor Dad’ author Robert Kiyosaki, admits to $1.2 Billion debt

Renowned author Robert Kiyosaki, famous for “Rich Dad, Poor Dad,” recently shared a distinctive perspective on debt and investment through his Instagram account. Kiyosaki revealed his strategy of using debt to acquire assets, citing his paid-off luxury vehicles—a Ferrari and a Rolls Royce—as examples of liabilities, not assets.

Expressing scepticism about saving cash due to the US dollar’s detachment from the gold standard in 1971, Kiyosaki advocates storing gold and converting earnings into precious metals like silver. Despite accumulating a substantial debt of $1.2 billion, he views it as a calculated move, stating that if he goes bust, the bank goes bust—not his problem.

Good debt, bad debt

In his books and public appearances, Kiyosaki has preached the value of “good debt” as opposed to “bad debt.”

So-called good debt, as his company’s website explains, is used to invest in assets like real estate or a business venture — expenditures that “put money in your pocket.”

On the other hand, “bad debt” is used to fund a liability — something that costs you money each month, like a car or a new TV.

“I was taught to use debt to get rich,” Kiyosaki said in an interview in August. “Most people use debt to get poor.”

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Unique views on wealth

In “Rich Dad, Poor Dad,” Kiyosaki disputed the notion that a high income was the only path to wealth and instead vouched for the benefits of entrepreneurship, calculated risk taking and passive income earned from investments.

In his investment portfolio, Kiyosaki emphasises “real assets” like Bitcoin, silver, gold, and even Wagyu cattle. Bitcoin, considered a hedge against the declining value of the US dollar, holds a special place in his preferences. Viewing gold as more stable than cash, which he dismisses as “trash,” and considering silver a long-term investment due to its increasing rarity and lower price compared to gold, Kiyosaki advocates a diversified approach.

Real estate remains a fundamental pillar of his investments, valued for its dual benefits of rental income and capital appreciation. The unconventional inclusion of Wagyu cattle in his portfolio mirrors Kiyosaki’s belief in thinking beyond traditional investments.

“Rich Dad, Poor Dad,” released in 1997, has sold over 40 million copies. In the book, Kiyosaki challenges the notion that earning a high income is the sole path to wealth, championing the advantages of calculated risk-taking and entrepreneurship.

Kiyosaki’s own empire has been the subject of controversy. His company, Rich Global LLC, filed for bankruptcy in 2012 following a legal dispute.  He’s faced criticism that his seminars do not deliver on promises to help attendees build wealth, and some called for a boycott of his book after a 2020 tweet about Black Lives Matter.

Kiyosaki’s company did not immediately respond to a request for comment.

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