A well-known figure in personal finance, Robert Kiyosaki, confesses to holding over $1 billion in debt—a surprising revelation he doesn’t consider troubling. In a candid Instagram reel on November 30, the “Rich Dad, Poor Dad” author nonchalantly expressed, “If I go bankrupt, the bank takes the hit, not me.”
Kiyosaki clarifies that his substantial debt has been strategically utilized to acquire assets, distinguishing it from liabilities like luxury cars (Ferrari or Rolls-Royce) which he proudly claims to have paid off entirely.
In an interview on the “Disruptors” podcast, Kiyosaki elaborated, stating, “I’m a billion dollars in debt because I understand the power of debt as money.” He advocates for a strategy of converting cash earnings into enduring assets like gold and silver, considering the U.S. dollar as volatile as “toilet paper.”
Recognized for his influential financial teachings, Kiyosaki’s bestselling book “Rich Dad, Poor Dad,” initially self-published in 1997, has surpassed 40 million copies sold.
Distinguishing between “good debt” and “bad debt,” Kiyosaki promotes leveraging “good debt” for investments in assets like real estate or business endeavors, defining it as expenses that “put money in your pocket.”
Contrarily, he labels “bad debt” as financing liabilities—expenditures that cost money each month, such as automobiles or electronics.
In his book, Kiyosaki challenges the traditional belief that a high income is the sole route to wealth. Instead, he advocates for entrepreneurship, calculated risk-taking, and passive income sourced from investments.
While supporting unconventional financial views, Kiyosaki has also ventured into extreme political stances, adopting right-wing-media narratives, even calling for the impeachment of President Joe Biden.
Expressing skepticism towards the U.S. dollar, branding it as “fake” and “trash,” Kiyosaki encourages investments in alternative assets like precious metals, bitcoin, or Wagyu cattle.
He has persistently warned about an impending market crisis, suggesting that the United States is witnessing “the end of an empire,” which could jeopardize the financial system.
Despite his prominence, Kiyosaki’s company, Rich Global LLC, faced bankruptcy in 2012, following a legal dispute. Criticisms have emerged regarding his seminars’ effectiveness in delivering promised wealth-building strategies, with calls for a boycott after a 2020 tweet related to Black Lives Matter.
Kiyosaki’s company declined to comment on the matter at this time.
