Is Billion Dollar Debt a Problem for Robert Kiyosaki?
The answer to this question might surprise you: according to Rich Dad, Poor Dad author Robert Kiyosaki, the answer is a resounding no. Kiyosaki has spoken candidly about his alleged $1 billion-plus debt, and why he doesn’t consider it to be a problem. In this article, we delve into Kiyosaki’s unique views on wealth, his views on good vs. bad debt, and remedies he’s put forward in the face of an impending market crisis.
What is “Good” and “Bad” Debt in Robert Kiyosaki’s Opinion?
In books and public appearances, Kiyosaki has preached the value of “good debt” as opposed to “bad debt.” Good debt, as his company’s website explains, is used to invest in assets like real estate or a business venture – expenses that “put money in your pocket.” With bad debt, the opposite is true. It is used to finance liabilities such as cars or new TVs – assets that cost you money each month.
The Rich Dad, Poor Dad Approach to Wealth: What Can We Learn?
In Rich Dad, Poor Dad, Kiyosaki disputes the notion that a high income is the only path to wealth, and instead vouches for the benefits of entrepreneurship, calculated risk taking, and passive income earned from investments. Kiyosaki has also recommended using cash to purchase physical assets such as gold or silver, which he argues retain their value as the U.S. dollar fluctuates. He’s also advised investing in Bitcoin and even Wagyu cattle.
Controversies Surrounding Robert Kiyosaki’s Financial Empire
However, not all of Kiyosaki’s financial advice has been uncontroversial. In 2012, Rich Global LLC, Kiyosaki’s company, filed for bankruptcy. He’s also faced criticism that his seminars do not deliver on promised wealth-building strategies, and there were calls for a boycott of his book after a 2020 tweet about Black Lives Matter.
Over the last two decades, Robert Kiyosaki has become one of the most well-recognised personal-finance personalities in the US. By advocating for good debt and suggesting different ways to increase personal wealth, Kiyosaki has inspired and changed the lives of people across the world. Despite this, he has also been the subject of considerable controversy. Ultimately, his approach to debt and finances is unique to each individual, and individuals should always undertake their own research before making any investment decisions.