‘Rich Dad, Poor Dad’s’ Robert Kiyosaki Says He’s $1.2 Billion In Debt Because ‘If I Go Bust, The Bank Goes Bust. Not My Problem’

Robert Kiyosaki, a best-selling author and seasoned investor, has a distinct philosophy on debt and investment. In a Nov. 30 Instagram reel, Kiyosaki elaborated on his debt philosophy, highlighting a critical distinction between assets and liabilities.

He said many people use debt to buy liabilities, while he uses debt to purchase assets. To illustrate his approach, Kiyosaki said his luxury vehicles, like a Ferrari and a Rolls Royce, are fully paid off, categorizing them as liabilities rather than assets.

In the reel, Kiyosaki also expressed skepticism toward saving cash, referencing the U.S. dollar’s detachment from the gold standard in 1971 under President Richard Nixon. Instead of saving cash, he saves gold and converts his earnings into silver and gold. This strategy, according to Kiyosaki, has led to an accumulation $1.2 billion in debt, an amount he admits to. He says he is in debt because “if I go bust, the bank goes bust. Not my problem.”

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His approach involves using debt strategically to enhance wealth. Kiyosaki categorizes debt into good debt and bad debt, with good debt being that which helps build wealth, such as loans used for acquiring income-generating assets like real estate, businesses or investments​​. He advocates using debt as leverage in investments, particularly in real estate, seeing it as an effective way to ride market fluctuations and capitalize on opportunities​​​​.

Kiyosaki’s investment strategy is multifaceted. He is known for his stance against fiat money, labeling it in derogatory terms and instead advocating for investment in what he calls “real assets” like Bitcoin, silver, gold and Wagyu cattle​​. Bitcoin, in particular, is a favorite of his, perceived as a hedge against the deteriorating value of the U.S. dollar​​. Kiyosaki views gold, another key component of his portfolio, as more stable and reliable than cash, which he calls “trash” because he just doesn’t “trust the frickin’…