'Rich Dad, Poor Dad' Author Robert Kiyosaki Says He Is $1.2 Billion In Debt

A bestselling personal finance author and entrepreneur Robert Kiyosaki recently shared that he is more than $1 billion in debt but it's "not my problem", he claims. 

In an Instagram reel, Mr Kiyosaki talks about his debt philosophy, highlighting a critical distinction between assets and liabilities. He explains that many people use debt to buy liabilities but he buys assets. Citing an example, he shared that his luxury vehicles, like a Ferrari and a Rolls Royce, are fully paid off, categorising them as liabilities, not assets.

In the video, Mr Kiyosaki voiced doubt about the act of saving cash, pointing to the US dollar's detachment from the gold standard during President Richard Nixon's tenure in 1971. Rather than saving cash, he opts to store gold and convert his earnings into silver and gold. Mr Kiyosaki credits this strategy for amassing a debt of $1.2 billion, an amount he openly acknowledges.

He said, "If I go bust, the bank goes bust. Not my problem."

See the video here:

During the "Disruptors" podcast, Mr Kiyosaki again admitted to having been in debt of a billion dollars. "I'm a billion dollars in debt because debt is money," he said in the podcast.

Further in the podcast, Mr Kiyosaki differentiated debt into good debt and bad debt. He shared that good debt helped him generate wealth such as loans used to acquire income. 

He also said that people should debt as leverage in investments, especially in real estate. 

Mr Kiyosaki is one of the best-selling author and well-known personal finance personalities. His 1997 book "Rich Dad, Poor Dad," has sold more than 40 million copies.