Renowned businessman and author of the 'Rich Dad, Poor Dad' series, Robert Kiyosaki, recently revealed that he carries a substantial debt burden of $1.2 billion. In a candid Reel posted on his Instagram, Kiyosaki explained his unique perspective on debt and its role in his financial strategy.
"All the money I make, if I buy something with debt, I am a billion too in debt. Because if I go bust, the bank goes bust. Not my problem," shared Kiyosaki, emphasizing his unconventional approach to debt and financial management. The 76-year-old investor shed light on the rationale behind accumulating such significant debt. He attributed it to his practice of converting earnings into gold and silver, initiated after the US dollar's detachment from the gold standard in 1971 during President Richard Nixon's tenure. Kiyosaki clarified that, unlike most individuals who use debt to acquire liabilities, he employs it to invest in assets.
Providing examples, he mentioned owning luxury vehicles like a Ferrari and a Rolls Royce, classifying them as liabilities rather than assets. According to Kiyosaki, his approach ensures that even though he enjoys these possessions, they are entirely paid off since they fall under the category of liabilities. Discussing what he deems 'good' debt, Kiyosaki identified loans utilized to acquire income-generating assets such as real estate, businesses, and investments. He further advocated for investments in 'real assets' like Bitcoin, gold, silver, and even Wagyu cattle. Bitcoin, in particular, stood out as his favorite, serving as a 'hedge' against the declining value of the US dollar.
Robert Kiyosaki's unconventional financial philosophy challenges traditional notions of debt and asset management, showcasing a unique perspective on wealth accumulation and financial security.
