Robert Kiyosaki, the author of the personal finance classic Rich Dad, Poor Dad, has a rather unconventional approach to money and debt. In a recent social media post, Kiyosaki boasted about having over $1 billion in debt, claiming that he uses debt as money and does not save cash.
“I use debt as money and I don’t save cash because in 1971 the dollar became debt,” Kiyosaki said, referring to the Nixon shock and the subsequent devaluation of the US dollar.
Kiyosaki believes in using debt to buy assets like gold, which he believes can withstand market crashes and inflation. He also issued warnings of an upcoming banking crisis, inflationary pressures, and a stock market crash, prompting him to buy oil wells and save gold and silver coinage outside of the United States.
While Kiyosaki believes in using debt to buy assets, he cautions against using debt to buy liabilities. He disapproves of taking out loans to buy materialistic items that won’t increase in value or pay dividends.
Kiyosaki’s controversial views on debt have been met with mixed reactions. Some, like reality TV star Nancy Rodriguez, have been inspired to clear their “bad debt” and invest in assets like real estate.
Whether you agree with his views or not, one thing is for sure: Robert Kiyosaki’s unconventional approach to debt and money has sparked widespread debate and conversation about personal finance.