If you are into finance or just self-improvement, you may have come across the book Rich Dad, Poor Dad. The best-selling book is considered to be one of the best books for getting acquainted with financial literacy. The book, published in 1997, is still among the top sellers. The book’s co-author, Robert Kiyosaki, has since become one of the most celebrated voices on anything to do with finance. As such, it is no surprise when Celebrity Net Worth claims that Kiyosaki’s net worth is about $100 million. However, what does come as a surprise is that the American-Japanese businessman also has considerable debt!
However, his attitude towards debt is not the same as the common man’s. While speaking on a podcast called Disruptors, Robert Kiyosaki explained that he is “a billion dollars in debt because debt is money.” He further explained that he has no faith in the dollar, that the country’s banks are crashing, and that “the people who will win are people who have gold and silver.” Now, 76-year-old Robert Kiyosaki’s financial predictions definitely carry weight, given his pedigree and achievements. However, what do those have to do with debt?
Robert Kiyosaki Has A Special Mindset Towards Debt
When it comes to debt, Robert Kiyosaki does not advise clearing it. In fact, he thinks it is very important to have. While speaking via a reel on Instagram, he claimed that the worst advice in today’s world is to be debt-free. Kiyosaki believes that buying assets via debt is a financially savvy and good thing to do. He also believes that the important aspect is owning hard assets.
For example, Kiyosaki shows the difference between oil stocks and oil wells, of which he owns the latter. In this case, every time the well pumps out a barrel or a gallon of oil, he receives an income. On the other hand, for stock owners, the possibility and amount of income come down to interest rates. When the interest rates increase, the stock market prices fall, this in turn increases the price of silver and gold. Meanwhile, those who own hard assets, such as real estate oil wells and cash-flowing assets, will never have to worry about the income stops.
However, just because he is in debt, does not mean all kinds of debts are good. In fact, Kiyosaki even explains that “bad debt” exists as well. In another reel, he explains that “bad debt” is when people buy liabilities using the debt. By liabilities, he means properties such as cars. Again, giving himself an example, Kiyosaki explains that the Ferrari he drives is 100% paid off since that is a liability. The same goes for his Rolls Royce.
As his final statement about depending on debt, Robert Kiyosaki explained that he has been using debt as money since 1971. He also does not save cash since then since in 1971 the dollar became debt. He explains: “If I go bust, the bank goes bust. Not my problem. I just don’t trust the frickin’ dollar.” At present, Kiyosaki converts all his cast into gold and silver but has also invested a bit in Bitcoin.
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