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The author of the bestselling personal finance book, Rich Dad Poor Dad, Robert Kiyosaki, has revealed that he is carrying about $1.2bn in debt, saying the borrowing is part of his strategy for building wealth through real estate.
The 79-year-old financial educator made the disclosure while speaking on the Get Rich Education podcast, where he explained that he deliberately uses debt to acquire income-generating assets.
“So, I’m a billion two in debt,” Kiyosaki said, according to reports.
He, however, cautioned his followers against copying his strategy without first understanding how debt and leverage work.
“Should not do what I do, right? But I studied it since 1974. If you’re going to learn to use debt, you’d better take some education,” he said.
Kiyosaki’s approach involves borrowing against appreciating properties instead of selling them. He argues that the borrowed funds can be used to acquire more assets and generate income while allowing investors to retain ownership of their properties.
The debt is reportedly linked to a real estate portfolio involving about 1,500 apartment units owned with investment partners.
His former wife and business partner, Kim Kiyosaki, has clarified that the $1.2bn figure should not be interpreted as the amount Robert personally owes. She said the borrowing is spread across properties owned with partners, meaning his individual exposure is considerably lower.
Reports citing Kim put Kiyosaki’s personal share of the debt at roughly $30m to $60m, although that estimate has not been independently audited.
Kiyosaki has long distinguished between what he calls “good debt” and “bad debt.” He argues that debt used to purchase assets that generate income can help build wealth, while borrowing to finance consumption can leave people financially vulnerable.
His philosophy formed a central theme of Rich Dad Poor Dad, first published in 1997. The book contrasts conventional financial advice with Kiyosaki’s argument that financial education, entrepreneurship, investing and acquiring assets are key to building wealth.
Despite the size of the debt figure, Kiyosaki has continued to defend his use of leverage, saying wealthy investors often borrow against assets rather than liquidate them.
However, financial experts have long warned that leverage can magnify losses as well as gains, particularly when property values fall, interest rates rise or investment income becomes insufficient to service debt.
Kiyosaki's latest disclosure has therefore renewed debate over his long-standing message that debt, when properly managed, can be used as a tool for wealth creation rather than simply viewed as a financial burden.
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