Newsmakers

Robert Kiyosaki, the author of the bestselling personal finance book Rich Dad Poor Dad, has revealed that he is associated with around $1.2 billion in debt, a figure that may sound alarming but is closely linked to his real-estate investment strategy.

The 79-year-old financial educator has repeatedly spoken about using borrowed money to acquire assets that generate income. For Kiyosaki, debt is not necessarily a financial burden when it is used to purchase properties and other assets capable of generating cash flow.

Speaking on the Get Rich Education podcast, Kiyosaki said he was carrying around $1.2 billion in debt. However, he also cautioned listeners against blindly following his strategy, stressing that understanding how debt works is essential before attempting a similar approach.

Where Does The $1.2 Billion Debt Come From?
According to reports, much of the debt is connected to Kiyosaki's extensive real-estate holdings, including apartment properties owned alongside investment partners.

His former wife and business partner, Kim Kiyosaki, has reportedly clarified that the $1.2 billion figure should not be interpreted as money that Robert Kiyosaki personally owes.

The real-estate portfolio reportedly involves approximately 1,500 apartment units, with the associated borrowing spread across properties and partnerships. Based on information cited in a recent Vanity Fair profile, Kiyosaki's individual exposure could be considerably lower than the headline figure, potentially estimated at between $30 million and $60 million.

Why Kiyosaki Embraces Debt
Kiyosaki has spent decades arguing that not all debt is bad. His financial philosophy distinguishes between borrowing for consumption and borrowing to acquire assets that can potentially produce income.

His real-estate strategy involves taking loans against properties as their value increases. Rather than selling an appreciating property, investors can potentially borrow against its equity and use the funds for further investments.

The strategy can also provide tax advantages in certain circumstances, although it comes with significant risks, particularly if property values fall or rental income fails to cover financing costs.

Kiyosaki has therefore presented his enormous debt figure as evidence of his investment philosophy rather than as a sign of financial distress.


Rich Dad Poor Dad' Made Him A Global Financial Celebrity
Kiyosaki shot to international fame after publishing Rich Dad Poor Dad in 1997. The book, which focuses on financial literacy, investing and building assets rather than relying solely on employment income, has sold more than 44 million copies worldwide.

Over the years, Kiyosaki has expanded his financial-education business through books, seminars, podcasts and other products, while continuing to promote real estate, precious metals and other investments.

His latest comments on debt have once again drawn attention to one of the central ideas behind his financial philosophy: wealthy investors, he argues, can use borrowing as a tool to acquire assets rather than treating all debt as something to be avoided.

However, Kiyosaki himself has acknowledged that his approach is not suitable for everyone. His massive level of borrowing also highlights the risks involved in using leverage, particularly in a volatile property market.

This version keeps the $1.2 billion headline angle while making the important distinction between total investment-related debt and Kiyosaki’s estimated personal exposure.