Robert Kiyosaki Reveals A $1.2 billion Debt
Robert Kiyosaki, author of Rich Dad, Poor Dad, has revealed a $1.2 billion debt. However, this isn”t a result of financial mismanagement. Kiyosaki purposefully utilizes debt as a tool to acquire assets, creating his unique financial strategies in the process. He recently discussed this approach in detail on social media.
Kiyosaki considers the luxury vehicles that he owns—a Ferrari and a Rolls Royce—to be liabilities, as those are fully paid off. Moreover, instead of saving cash, Kiyosaki buys gold and silver, prompting him to opt for loans to buy assets.
Kiyosaki acknowledged that following this strategy has resulted in amassing a debt of $1.2 billion and that “if I go bust, the bank goes bust. Not my problem,” he said.
Kiyosaki classifies this as good debt as it helps him build wealth by acquiring income-generating assets like real estate, businesses, or investments. Kiyosaki urges investors to use debt as leverage in investments, especially in real estate, which in turn helps tackle market fluctuations.
“I don’t own any copper. I own a lot of silver. I found a silver mine in Argentina, and Yamana Gold (Canadian mining company) bought it from me. I do own tons of gold and silver,” Kiyosaki said in an interview with Stockpulse at the Vancouver Resource Investment Conference in 2022.
Kiyosaki has always advocated for investing in “real assets” like Bitcoin, silver, gold, and Wagyu cattle, as it helps hedge against the fluctuations in the value of the US dollar. He is particularly in favour of leveraging Bitcoin, gold, and silver for their stable and reliable nature. However, cash, according to him, is “trash” because he just doesn”t “trust the frickin” dollar.”
Real estate is the other investment venue he trusted, with its dual benefits of rental income and capital appreciation. Kiyosaki has invested in Wagyu cattle too, which is considered one of the most unconventional investment options as it reflects his belief in going beyond traditional investments.
Robert Kiyosaki”s “Rich Dad, Poor Dad” is the best-selling book, having sold over 40 million copies. The book was released in 1997. In his book, Kiyosaki calls for taking calculated risks, hailing entrepreneurship as the optimal method of wealth generation rather than earning big as the distinctive method of wealth.
