5 Things Robert Kiyosaki Gets Wrong About Building Wealth, According to Experts
Written by
Chris Adam
Edited by
Cory Dudak
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In his popular book “Rich Dad Poor Dad,” author Robert Kiyosaki talked about financial planning and building wealth. Many readers have since put his advice to work to help improve their money situations.
However, as with nearly any advice, there are a number of critics who’ve said his advice doesn’t work for all situations. Michael Gregory of Dad is FIRE, for instance, noted that one reason the advice doesn’t work for everyone is that Kiyosaki’s push for constant wealth accumulation and no clear point at which to stop may put some financial futures in jeopardy.
GOBankingRates talked to more financial experts for their thoughts on advice Kiyosaki may have gotten wrong about building wealth (and what you can do instead).
1. Real Estate Isn’t a Guaranteed Path to Wealth
Christopher Stroup, founder and president at Silicon Beach Financial, took issue with Kiyosaki’s approach to real estate.
“Kiyosaki promotes real estate as the ultimate wealth-building tool, but the reality is more nuanced than that,” Stroup said. “Passive income from real estate isn’t always passive because it requires capital, time and expertise. A well-diversified portfolio that includes real estate, equities and tax-efficient strategies can lead to more sustainable long-term wealth.”
2. Bitcoin Is Speculative, Not a Wealth-Building Strategy
Per Stroup, Kiyosaki’s enthusiasm for Bitcoin overlooks its fundamental risks.
“Unlike stocks or real estate, Bitcoin doesn’t generate dividends, rent or earnings,” he said. “It relies purely on speculation. Extreme volatility makes it unsuitable as a core retirement asset, and its price fluctuations can erase gains in an instant.”
3. Debt Can Be Dangerous, Not Just a Tool
Kiyosaki encourages using debt to acquire assets, but not all debt is productive. According to Stroup, borrowing only works when the underlying asset appreciates and generates enough income to cover your liabilities.
“Many investors over-leverage, assuming values will always rise,” he said. “All you need to do is look back to 2008 to be proven otherwise. Smart leverage isn’t about aggressive expansion. It’s about aligning risk with liquidity and your long-term financial goals.”
4. Financial Education Requires More Than Just Mindset
While Kiyosaki emphasizes mindset over technical knowledge, wealth isn’t built on mindset alone, Stroup noted.
“Tax planning, estate strategies and diversified investments require real expertise,” he explained. “A ‘just think rich’ approach can lead to overconfidence and poor financial decisions.
Stroup said the real key isn’t just motivation. He said it’s surrounding yourself with professionals who turn financial complexity into actionable strategies.
5. Cash Flow May Not be a Great Focus
While traditional financial advice often focuses on growing your net worth, Kiyosaki has suggested the real key to financial freedom is consistent and positive cash flow. He has stressed that you should prioritize assets that generate regular income — like rental properties, dividend-paying stocks or businesses — over simply accumulating assets that might not be producing income.
“While this may be helpful for someone who is retired, cash flow is not the primary focus for a young accumulator who already has their W-2 income to live off of,” said Filip Telibasa, a certified financial planner at Benzina Wealth. “Instead, this person is better off finding aggressive growth stocks that do not necessarily pay a dividend or cash flow. Holding these positions in a tax advantaged vehicle like a Roth IRA further compounds long term benefits.”
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