Rich Dad Poor Dad Author Robert Kiyosaki Reveals $1.2 Billion Debt

The famous author Robert Kiyosaki, known for the bestselling book “Rich Dad Poor Dad,” recently presented an unconventional approach to debt and investment, incorporating assets and liabilities. Kiyosaki, an author of The New York Times bestselling books, shared his unusual financial decisions on Instagram, revealing his use of debt to purchase assets.

In a candid confession, Kiyosaki disclosed that his luxury cars, such as a Ferrari and Rolls Royce, are all paid off, thus classified as liabilities rather than assets. Expanding on this perspective, he expressed skepticism about traditional cash savings due to the US dollar's detachment from the gold standard during President Richard Nixon’s presidency in 1971.

Contrary to conventional wisdom, Kiyosaki opts to store wealth in precious metals, primarily gold, steering away from saving in cash. He actively converts his earnings into silver and gold, a strategy he attributes to accumulating a substantial debt of $1.2 billion. However, Kiyosaki remains unapologetic about his debt, asserting that if he faces financial ruin, it becomes the bank's problem, not his own.

Delving deeper into the rationale behind his substantial debt, Kiyosaki clarified that the borrowed funds were strategically invested in income-generating assets. Rather than hoarding cash, he embraced gold and silver as vehicles for preserving wealth, a decision that ultimately led to the sizable debt he now carries.

Kiyosaki distinguishes between good and bad debt, advocating for the former as an instrument of wealth creation. He regards loans taken to invest in income-generating properties such as real estate, business, or investments as positive. Furthermore, he sees debt leverage, especially in real estate investments, as an effective means to deal with market swings.

At the Vancouver Resource Investment Conference in 2023, Kiyosaki disclosed his diversified portfolio of investments. He mentioned the possession of large quantities of gold and silver, emphasizing their stability and reliability in contrast with what he contemptuously calls “trash,” the US dollar. Additionally, Kiyosaki endorsed Bitcoin as protection against the failure of the US dollar.

As Kiyosaki notes, silver is a key element in his long-term investment strategy due to its scarcity and lower cost per ounce compared to gold. Real estate is a staple in his investment portfolio for two reasons: it provides rental income and capital appreciation. Following an unorthodox approach to investments, Kiyosaki has invested in Wagyu cattle, demonstrating his openness to non-conventional wealth creation avenues.

The financial classic “Rich Dad, Poor Dad,” published in 1997, has sold more than forty million copies worldwide. In the book, Kiyosaki argues that big earnings alone cannot lead to wealth creation. Instead, he supports planned risk-taking and entrepreneurship as the main pillars of financial prosperity. Kiyosaki’s financial philosophy remains unique, motivating people to think beyond traditional concepts and find unconventional ways of accumulating wealth.