Robert Kiyosaki, the author of the bestselling personal-finance book Rich Dad Poor Dad, says he is carrying roughly $1.2 billion in debt, a figure that may sound alarming but is closely linked to his real-estate investment strategy.
The 79-year-old financial educator has repeatedly highlighted the debt figure while arguing that borrowing can be a powerful tool when used to acquire assets that generate income.
“So, I’m a billion two in debt,” Kiyosaki said on the Get Rich Education podcast. At the same time, he cautioned listeners against blindly copying his approach, saying they “should not do what I do.”
Much of the Debt Is Linked to Real Estate
The headline figure does not necessarily mean Kiyosaki personally owes $1.2 billion in the way an individual might carry a mortgage, credit-card balance or personal loan.
According to reporting on his real-estate holdings, the debt is largely associated with properties owned through partnerships and investment entities. His former wife and business partner, Kim Kiyosaki, has said the investments involve roughly 1,500 apartment units, with Kiyosaki’s individual exposure believed to be substantially smaller than the overall debt figure.
That distinction is important because the $1.2 billion represents borrowing connected to a broader real-estate portfolio rather than simply personal spending.
Why Kiyosaki Embraces Debt
Kiyosaki has spent decades promoting the idea that not all debt is bad.
His philosophy is based on using borrowed money to purchase income-producing assets, such as real estate and businesses. If those assets generate enough income or appreciate in value, investors can potentially build wealth while using leverage rather than relying entirely on their own cash.
He has said he has been studying the use of debt since 1974 and believes investors need financial education before attempting such strategies.
The Strategy Comes With Significant Risks
Leverage can increase returns when investments perform well, but it can also magnify losses.
A decline in property values, rising borrowing costs, falling rental income or difficulties refinancing could put highly leveraged investors under pressure. That is why Kiyosaki himself has repeatedly warned that his strategy is not suitable for everyone.
His approach depends heavily on the underlying assets continuing to generate income and retain or increase their value.
A Message Consistent With Rich Dad Poor Dad
Kiyosaki’s debt strategy reflects one of the central ideas behind Rich Dad Poor Dad: wealthy investors often think differently about assets, liabilities and the use of borrowed capital.
The book, first published in 1997, helped turn Kiyosaki into one of the world’s best-known personal-finance authors. His teachings have long encouraged readers to focus on acquiring assets that can generate cash flow rather than simply accumulating savings.
$1.2 Billion Debt Is Not the Same as $1.2 Billion Loss
The distinction between debt and financial loss is crucial.
Having $1.2 billion in debt does not automatically mean Kiyosaki has lost $1.2 billion. Debt is a liability, while the properties and other assets financed by that borrowing have their own values and potential income streams.
The real question is whether the assets backing the debt generate sufficient returns to justify the borrowing costs and maintain the underlying investments.
The Bigger Lesson for Investors
Kiyosaki’s disclosure highlights both the potential and danger of financial leverage.
For experienced investors with substantial assets and diversified investments, borrowing can provide access to opportunities that would otherwise require enormous amounts of capital. But for ordinary investors, excessive leverage can quickly turn into a financial burden.
Kiyosaki’s own warning is therefore significant: his strategy may work within his particular investment structure, but that does not mean it is appropriate for everyone.
Ultimately, the $1.2 billion figure tells only part of the story. The more important question is what the debt is financing, how much income those assets generate and who ultimately carries the financial risk.
