Robert Kiyosaki, the author of the best-selling personal finance book Rich Dad Poor Dad, has revealed that he is $1.2 billion in debt and simultaneously advised his followers against replicating his investment approach.
Kiyosaki, 79, made the disclosure during an appearance on the Get Rich Education podcast, where he explained that borrowing money to acquire income-producing assets is the foundation of his personal investment strategy.
Kiyosaki's debt revelation and warning
"So, I'm a billion two in debt," Kiyosaki said, before adding, "People should not do what I do, right? But I studied it since 1974. If you're going to learn to use debt, you'd better take some education."
The author's comments come as he continues to promote his philosophy that understanding and using debt is key to building wealth, a central theme of his 1997 book that has sold over 44 million copies worldwide.
What the $1.2 billion actually means
His ex-wife and longtime business partner Kim Kiyosaki has since provided context that complicates the headline figure. Speaking to Vanity Fair, she said the debt is tied to a real estate portfolio of approximately 1,500 apartment units held with partners, meaning Kiyosaki's personal share of the liability is significantly smaller than the total figure suggests.
"Technically, yes, we have all this debt," Kim said, adding that her ex-husband deliberately uses the billion-dollar figure to grab attention before making the case for why investment debt differs from consumer debt. "He loves to say things that shock," she told the magazine.
Experts divided on Kiyosaki's strategy
Financial experts are divided on whether Kiyosaki's approach is brilliant or dangerous depending on market conditions. David Perez, a multifamily real estate investor and founder of Tax Maverick AI, described the strategy as sound, noting that borrowing against property equity is standard practice among serious investors and typically generates tax advantages since no sale has occurred.
John Poole, founder of consultancy JPTD Partners, was less enthusiastic. "I think there's good debt and bad debt, and then there's $1.2 billion of debt, which you better know exactly what in the world you're doing," he said, warning that leverage works well in rising markets but can be catastrophic when conditions reverse.
"He may call this the Rich Dad debt, but for the average investor, it could turn out to be Poor Dad bankruptcy really quickly," Poole added.
Who is Robert Kiyosaki
Rich Dad Poor Dad was first self-published in 1997 and has since sold over 44 million copies, making it one of the best-selling personal finance books ever written. The book contrasts financial lessons Kiyosaki attributes to his biological father, a Hawaii state education official, with those he learned from the father of a childhood friend, a hotel businessman he identified as his real-world "Rich Dad."
Kiyosaki has built a financial education empire around the book's central argument: that acquiring cash-producing assets and understanding debt is the key distinction between the wealthy and everyone else.
