Rich Dad Poor Dad author Robert Kiyosaki has revealed that he is carrying $1.2 billion in debt while warning people not to replicate his investment strategy.
Kiyosaki, 79, made the disclosure during an appearance on the Get Rich Education podcast, where he explained that borrowing to acquire income-producing assets is central to his approach to wealth creation.
“So, I’m a billion two in debt,” he said, before adding, “People should not do what I do, right? But I studied it since 1974. If you’re going to learn to use debt, you’d better take some education.”
The eye-catching figure, however, requires some context.
Kiyosaki’s former wife and longtime business partner, Kim Kiyosaki, told Vanity Fair that the debt is linked to a real estate portfolio of about 1,500 apartment units held with partners.
This means the $1.2 billion figure does not represent Kiyosaki’s personal liability alone, with his individual share of the debt significantly smaller than the headline figure suggests.
“Technically, yes, we have all this debt,” Kim said, explaining that Kiyosaki deliberately uses the billion-dollar figure to attract attention before explaining the distinction between investment debt and consumer debt.
“He loves to say things that shock,” she said.
Kiyosaki argues that borrowing against assets can help investors acquire properties that generate income, rather than using debt to fund consumption.
The strategy has attracted differing views from financial professionals, with some arguing that leverage can be a legitimate tool for experienced investors while others warn of the risks involved when markets turn against highly leveraged borrowers.
David Perez, a multifamily real estate investor and founder of Tax Maverick AI, described Kiyosaki’s approach as a standard strategy among serious property investors.
He noted that borrowing against property equity can provide tax advantages because investors do not necessarily have to sell an asset to access capital.
John Poole, founder of consultancy JPTD Partners, was more cautious about the scale of Kiyosaki’s borrowing. “I think there’s good debt and bad debt, and then there’s $1.2 billion of debt, which you better know exactly what in the world you’re doing.”
He warned that leverage can amplify returns during rising markets but can also magnify losses when market conditions deteriorate. “He may call this the Rich Dad debt, but for the average investor, it could turn out to be Poor Dad bankruptcy really quickly.”
Who Is Robert Kiyosaki? -Kiyosaki is the author of Rich Dad Poor Dad, one of the world’s best-known personal finance books.
First self-published in 1997, the book has sold more than 44 million copies and became the foundation of Kiyosaki’s wider financial education business.
The book contrasts the financial lessons Kiyosaki says he learned from his biological father, a Hawaii state education official, with those attributed to the father of a childhood friend, a hotel businessman whom he called his “Rich Dad.”
Kiyosaki’s financial philosophy centres on acquiring cash-generating assets and developing financial literacy, particularly around the use of debt.
His latest disclosure illustrates the central tension in that philosophy: debt can be used as a tool for building wealth, but the same leverage can expose investors to substantial losses if assets fall in value or income fails to cover obligations.
Erizia Rubyjeana
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