Robert Kiyosaki, the author famed for “Rich Dad, Poor Dad,” has recently offered an intriguing perspective on managing debt and investments, focusing on the distinction between assets and liabilities. Utilizing Instagram to express his views, Kiyosaki presented his unique approach to using debt.
In an Instagram reel, Kiyosaki delved into his philosophy surrounding debt. He emphasized the difference between purchasing liabilities versus assets using borrowed money. For example, he mentioned that his high-end cars, including a Ferrari and a Rolls Royce, are paid off and classified as liabilities rather than assets.
Kiyosaki also questioned the wisdom of saving money, especially in light of the US dollar’s break from the gold standard in 1971 under President Nixon. He prefers to invest in tangible assets like gold and silver, rather than holding cash. This approach has led him to accumulate a significant amount of debt—$1.2 billion—which he openly acknowledges.
Expanding on the concept of good and bad debt, Kiyosaki identifies ‘good debt’ as that which aids in wealth accumulation. This includes loans taken for buying assets that generate income, such as real estate, businesses, or other investments.
He advocates for using debt strategically, especially in real estate investments, seeing it as a way to leverage market changes effectively.
Kiyosaki places a strong emphasis on real estate, valuing it for its potential to generate rental income and appreciate in value over time.
One of his more unusual investment choices is in Wagyu cattle, reflecting his belief in diversifying beyond traditional investment avenues. This choice showcases his willingness to explore unconventional investment opportunities, consistent with his overall financial philosophy.