Here's why 'Rich Dad Poor Dad' author Robert Kiyosaki isn't worried about his P67 billion debt
Japanese-American author Robert Kiyosaki, who is known for writing the 1997 book Rich Dad Poor Dad, revealed that he has accumulated a debt amounting to a total of $1.2 billion (P67 billion). However, instead of being worried about it, he said in an Instagram reel that the debt is actually an advantage to him.
"A lot of people use debt to buy liabilities," he said, naming his Ferrari and Rolls-Royce among his liabilities and not assets. "It’s paid off 100 percent because it’s a liability."
Kiyosaki explained that he doesn't save cash as he uses debt as money, citing the Nixon Shock as the reason for the logic. Financial media website Investopedia defined this as an economic policy shift undertaken by former US president Richard Nixon, which devalued the US dollar and led to the rise of cryptocurrencies.
According to him, he stocks up on gold, which is deemed to be valuable against inflation because its price tends to rise when the dollar loses value.
"At that point, I save gold," he said. "That's why I am $1.2 billion in debt because if I go bust, the bank goes bust. Not my problem."
"And all the cash I make, I convert to silver and gold, and pretty soon, it got to be a big problem, which is why I own Bitcoin also because I just don't trust the frickin dollar," he added.
Kiyosaki furthered in another Instagram reel that living debt-free is "the worst advice you could give anybody today," warning listeners that there may be a banking crisis soon. He attempts to keep his finances safe from this by purchasing oil wells and keeping the gold and silver he had saved in banks outside of the US.
"The people who will win are people who have gold and silver," he said in an interview on the Disruptors podcast.
Kiyosaki rose to fame for his best-selling personal finance book Rich Dad Poor Dad, which highlights the importance of financial literacy, financial independence, and building wealth through investing in assets, and businesses, among others.