A Billionaire in Debt: Robert Kiyosaki’s Roadmap to Debt-Free Living
Written by
Yaël Bizouati-Kennedy
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T. Woods
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Robert Kiyosaki, the bestselling billionaire author of Rich Dad Poor Dad, recently made a startling revelation: he has $1.2 billion in debt, according to a YouTube video.
In a 2022 YouTube video, Kiyosaki explained that the reason he’s “so rich” is because he’s in debt. Later, in a November 2023 Instagram video, he said that while many people use debt to buy liabilities, he uses debt to buy assets.
“So I drive a Ferrari, guess what? It’s paid off 100%, because it’s a liability. I drive a Rolls Royce, it’s paid off 100%, because it’s a liability,” he said. “I use debt as money and I don’t save cash.”
According to him, the dollar “became debt” in 1971 and he doesn’t trust the currency.
“All the cash I make, I convert to silver and gold,” he said, adding that this is also the reason why he owns some Bitcoin. “If I go bust, the bank goes bust.”
As Benzinga.com has noted, Kiyosaki’s stance is to use debt to create more wealth — in other words, leveraging money to make more money, such as using loans to acquire real estate, which are investments that appreciate over time.
Another advantage are the tax benefits associated with debt. When used for investment purposes, debt can in some instances be tax-deductible, as Benzinga noted.
“If you understand history, the reason I pay no taxes is because I borrow money. I’m a debtor,” he said in the video.
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