Robert Kiyosaki, 'Rich Dad Poor Dad' Author, Says, 'I Am a Billionaire in Debt' — And Calls Dave Ramsey An Idiot For Encouraging People To Live Debt-Free (2024)
Robert Kiyosaki, the author renowned for his best-selling book “Rich Dad Poor Dad,” has again captured the public’s attention with his unconventional financial strategies, this time revealing a staggering $1.2 billion in debt. The revelation follows a statement he made in September 2022 via a YouTube short, where he disclosed being $1 billion in debt at the time, accompanied by the caption, “The reason I’m so rich is because I’m in debt.”
In the YouTube video, Kiyosaki explains his financial status, saying, “If you understand history, the reason I pay no taxes is because I borrow money. I’m a debtor.”
He directly addresses his critics and those with contrasting economic ideologies, saying, “And check this out ... I mean all you communists out there, check this stuff out ... I am a billionaire in debt. You know why? Because I get tax breaks for borrowing money.”
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Kiyosaki’s approach to wealth and debt contrasts with more traditional financial advice. He believes that leveraging debt is a key driver of his wealth because of the tax advantages it provides.
Kiyosaki goes on to critique the common financial advice of living debt-free, as popularized by financial expert Dave Ramsey, saying, “And my friend Dave Ramsey says ‘live debt free.’ Well, you’re an idiot. I mean he’s my friend, but I say ‘Dave, I like debt.'”
He acknowledges Ramsey’s caution toward debt saying, “I know but most people can’t handle debt.” This admission highlights a critical divide in financial philosophy — while Kiyosaki sees debt as a tool for wealth accumulation, he concedes that not everyone possesses the financial acumen to manage it effectively.
Kiyosaki’s commentary extends beyond personal finance to critique the broader educational system, arguing, “But that’s why there is no financial education in schools because if you knew how to handle debt you wouldn’t save that crappy dollar you have in your hand. I’d rather borrow the money tax-free.”
Through this statement, he advocates for a more nuanced understanding of debt and finance, suggesting that conventional wisdom on saving and debt avoidance may be limiting for those looking to maximize their financial potential.
The author's financial strategy capitalizes on the tax benefits associated with borrowing in the United States. The principle at work here is that interest payments on debt, especially when used for investment purposes, can be tax-deductible. This means that the costs of borrowing can effectively reduce the amount of taxable income an individual or entity reports, lowering their overall tax liability.
In the context of Kiyosaki’s investments, particularly in real estate, borrowing money to finance these investments allows him to deduct the interest paid on the debt from his taxable income. This deduction is a significant factor in why he says, “The reason I pay no taxes is because I borrow money.” The tax code in the United States offers provisions that incentivize investment and business activities by allowing deductions for various expenses, including interest on loans that finance productive activities.
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Rich Dad, Poor Dad by Robert T. Kiyosaki is a personal finance book that emphasizes the importance of financial education, teaches how to make money work for you, and challenges traditional beliefs about money.
Robert Kiyosaki – An author who taught the world the importance of financial literacy, financial independence and building wealth through investing in assets through his book “Rich Dad Poor Dad” has surprised everyone by sharing an Instagram post in which he states he is in debt of Rs 1.2 billion.
He founded Rich Global LLC in 1977, a conglomerate specializing in manufacturing, retail operations, and financial education. Later in 1997, Kiyosaki and his wife, Kim Kiyosaki, established Cashflow Technologies, Inc., a financial education company operating under the Rich Dad brand, which propelled their success.
As of July 2023, Robert Kiyosaki's net worth is estimated to be $147 million. His net worth has skyrocketed in recent years, from around $80 million in 2012, and his annual earnings are estimated to be approximately $5.88 million.
Lack of Concrete Advice: Critics argue that the book provides more of a motivational or inspirational message rather than practical advice on how to get rich. The author, Robert Kiyosaki, often uses personal anecdotes to illustrate his points but doesn't provide detailed guidance on how to achieve financial success.
The most important lesson from Rich Dad, Poor Dad is that financial literacy is crucial to financial success. He argues that school education fails in this regard and needs to effectively teach financial literacy, including the basics of financial management and wealth building.
He believes that leveraging debt is a key driver of his wealth because of the tax advantages it provides. Kiyosaki goes on to critique the common financial advice of living debt-free, as popularized by financial expert Dave Ramsey, saying, “And my friend Dave Ramsey says 'live debt free. ' Well, you're an idiot.
Kiyosaki also said that he uses debt to pay for assets, and categorises luxury vehicles as 'liabilities. ' Businessman-author Robert Kiyosaki, known for his 'Rich Dad, Poor Dad' series of personal finance books, recently shared that he is under a debt of $1.2 billion.
Kiyosaki and his wife have made a deliberate choice not to have children, a decision he openly discusses. The author believes that his background and personal traits would not align with parenthood, admitting, “I'd be a terrible father.”
You might be wondering if the book is still relevant. Well, good news – many of the lessons it teaches are timeless and can help you understand money better. The book discuss assets (things that make you money) and liabilities (things that cost you money). This concept is still super important today.
Rich Dad Poor Dad is a good book for beginners. It introduces a lot of concepts, views and rules that most people have never encountered before. And packages this into a story which makes it easy to understand.
“The poor and the middle-class work for money.The rich have money work for them.” This is my best quote from the book as this quote encapsulates the central theme of the book: the importance of transitioning from being an employee who works for a paycheck to becoming an investor who makes money work for you.
“People who lack internal fortitude often become victims of those who have self- discipline.” “The easy road often becomes hard, and the hard road often becomes easy.” “In today's fast-changing world, it's not so much what you know anymore that counts, because often what you know is old. It is how fast you learn.
(rich dad's speech) "Keep working boys, but the sooner you forget about needing a paycheck, the easier your adult life will be. Keep using your brain, work for free, and soon your mind will show you ways of making money far beyond what I could ever pay you. You will see things that other people never see.
Introduction: My name is Mr. See Jast, I am a open, jolly, gorgeous, courageous, inexpensive, friendly, homely person who loves writing and wants to share my knowledge and understanding with you.
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