'Rich Dad, Poor Dad's' Robert Kiyosaki has said he's $1.2 billion in debt because 'if I go bust, the bank goes bust. Not my problem," per YF.
He emphasized that while many individuals use debt to acquire liabilities, his strategy involves utilizing debt to procure assets. Kiyosaki provided examples by highlighting that his luxury vehicles, such as a Ferrari and a Rolls Royce, are entirely paid off, categorizing them as liabilities rather than assets.
In the video, Kiyosaki expressed reservations about saving cash, referencing the U.S. dollar's shift from the gold standard in 1971 during President Richard Nixon's administration. Instead of saving in cash, he opts for gold and converts his earnings into silver and gold. Kiyosaki attributed his $1.2 billion in debt accumulation to this approach, acknowledging it openly. He stated that being in debt is not a concern for him because, in his words, "if I go bust, the bank goes bust. Not my problem."
His financial strategy involves leveraging debt strategically to augment wealth. Kiyosaki distinguishes between good debt and bad debt, with good debt contributing to wealth-building activities, such as loans for acquiring income-generating assets like real estate, businesses, or investments. He advocates using debt as leverage in investments, especially in real estate, considering it an effective means to navigate market fluctuations and seize opportunities.
Kiyosaki's investment strategy spans various facets. He is recognized for his critical stance on fiat money, often using derogatory terms, and advocates investing in what he terms "real assets," including Bitcoin, silver, gold, and Wagyu cattle. Bitcoin, in particular, is a favored asset for him, seen as a hedge against the devaluation of the U.S. dollar. Kiyosaki perceives gold as a more stable and reliable asset than cash, which he dismisses as "trash" due to his lack of trust in the U.S. dollar. He expresses a willingness to increase his gold holdings even in the face of significant price drops.
Silver plays a substantial role in his investment strategy, viewed as a long-term investment due to its increasing rarity and relatively lower price compared to gold. Real estate remains a fundamental component of his investments, appreciated for its dual benefits of rental income and capital appreciation. Additionally, Kiyosaki's investment in Wagyu cattle reflects his commitment to diversifying his portfolio beyond traditional assets.
Kiyosaki's approach to debt and investment is grounded in a broader financial perspective. He considers money as a form of debt or obligation, a tool that can be strategically utilized to acquire assets and generate wealth. His philosophy underscores the importance of financial education, urging individuals to be well-informed about financial matters.
While Kiyosaki's methods have yielded success for him, they come with inherent risks, as evidenced by his past financial challenges, including filing for bankruptcy in 2012 following a legal dispute over royalties.
