Rich Dad, Poor Dad Author Explains Why Having Billion Dollars In Debt Is Good Thing

For most people being in debt is a worst nightmare, but author and finance educator Robert Kiyosaki thinks otherwise. Recently, the author of the bestselling book Rich Dad, Poor Dad revealed that he has over one billion dollars in debt. However, the author explained his debt is a “good debt” as he uses the loan money to buy assets that will only grow in value as opposed to buying liabilities. He explained that the biggest mistake people make with taking loans is using the loan money to buy liabilities. The author said, “A lot of people use debt to buy liabilities. I use debt to buy assets. I drive a Ferrari. Guess what? It’s paid off 100% because it’s a liability. I drive a Rolls-Royce. It’s paid off 100% because it’s a liability.”

He also revealed that he holds his savings and assets in gold and crypto as he does not trust the dollar. He gave the example of how in 1971 the dollar lost its value against European currencies due to former US president Nixon’s New Economic Policy. Kiyosaki explained, “I use debt as money and I don’t save cash because in 1971 the dollar became debt.” The 76-year-old confidently asserted that his gold and silver assets can withstand market fluctuation and said, “If I go bust, the bank goes bust. Not my problem.”

A post shared by Robert Kiyosaki (@therealkiyosaki)

Recently, Kiyosaki appeared on the Disruptors podcast with host Rob Moore and spoke about the importance of having good debt and not saving money in banks. He elaborated, “Our banks are crashing, so the people who will win are people who have gold and silver.”

Previously, in an interview with Kitco News, Kiyosaki said he preferred assets like silver, gold, silver, Bitcoin, and surprisingly the Wagyu cattle over traditional assets like stocks, exchange-traded funds (ETFs), and paper money.

“I don’t invest in anything that they can print. I’m an entrepreneur, I start gold mines, I start oil wells. I invest in cattle, you know, Wagyu cattle. Do you know why? Because every time the cattle that the Wagyu bull breeds, I get semen, I mean cash flow. I trust Wagyu cattle more than Joe Biden.”

Wagyu cattle are Japanese cattle that are bred especially for beef. Wagyu beef is known for its high marbling and thin lines of fat that are evenly distributed throughout, giving it a unique flavor. This beef is very expensive and considered a delicacy.