Rich Dad Poor Dad Author Robert Kiyosaki Reveals He's In $1 Billion Debt

The 1997 bestseller book Rich Dad Poor Dad has been considered a perfect reference for people aiming to solidify their financial status over two and a half decades. The book was co-authored by Robert T. Kiyosaki and Sharon Lechter. It promotes the value of financial education and literacy, as well as financial independence and wealth creation through asset and real estate investing, business startup and ownership, You would think that the writers of the book would be in a sound financial position themselves and that is why it came as a shocker to many when co-writer Robert Kiyosaki revealed he was buried under a debt of 1 billion dollars. The author however claims that it is ‘not his problem’.

Kiyosaki discusses his debt philosophy in an Instagram reel, emphasising the importance of distinguishing between assets and liabilities. He clarifies that whereas many utilize debt to purchase liabilities, he purchases assets. Using the example of his paid-off expensive cars—such as a Rolls-Royce and a Ferrari—he described them as liabilities rather than assets.

In the video, Kiyosaki cast doubt on the practice of conserving cash by citing the US dollar’s 1971 secession from the gold standard, which occurred under President Richard Nixon. He chooses to store gold instead of putting money away and turns his profits into both silver and gold. Mr. Kiyosaki freely admits that he has accumulated a $1.2 billion debt as a result of using this method. He said, “If I go bust, the bank goes bust. Not my problem.”

A post shared by Robert Kiyosaki (@therealkiyosaki)

In the ‘Disruptors’ podcast, Kiyosaki once more acknowledged that he owed a billion dollars. “Because debt is money, I owe a billion dollars,” he declared in the podcast. Kiyosaki went on to distinguish between good and bad debt in the episode. He disclosed that prudent debt, such as loans taken out to obtain revenue, enabled him to amass riches.