Robert Kiyosaki Revelation: Why 'Rich Dad Poor Dad' Author Claims His $1.2 B Debt Is 'Bank's Problem'

The world of personal finance rarely sees a headline quite as startling as this: Robert Kiyosaki, the author whose name is synonymous with smart investing, has openly disclosed that he is carrying more than $1.2 billion in debt.

While most people view a large debt pile as a fast track to ruin, the best-selling author of Rich Dad Poor Dad casually shrugged off the risk with a controversial statement: 'If I go bust, the bank goes bust. Not my problem.'

The audacity of the statement sent shock and giggles throughout the financial world, once again thrusting Kiyosaki into the global spotlight. For an author who has sold tens of millions of books teaching the fundamental differences between assets and liabilities, this claim is the ultimate act of self-branding and a deliberate challenge to conventional wisdom.

It forces readers, critics, and banks alike to confront his decades-old philosophy: is colossal debt a liability, or is it, as Kiyosaki argues, the ultimate smart financial tool and a form of leverage?

The Financial Philosophy of Robert Kiyosaki and His Best-Sellers

Robert Kiyosaki is an American author, investor, and businessman with multiple best-selling published books to his name. He is perhaps best known for authoring the 1997 personal finance book Rich Dad Poor Dad, which has sold over 40 million copies worldwide.

The book subsequently went on to produce an entire series, called the Rich Dad series, spawning titles such as Rich Dad's Guide to Investing, Rich Kid Smart Kid, and Rich Dad Poor Dad for Teens, among many others.

Rich Dad Poor Dad has held the number one spot on numerous bestseller charts, including The Wall Street Journal, USA Today, and The New York Times. Among his other works is Why We Want You to be Rich: Two Men One Message, which he co-authored with Donald Trump, and which debuted at number one on The New York Times bestseller list in 2006.

Kiyosaki co-founded The Rich Dad Company with his wife, Kim, providing financial education through books and the Cashflow board game. On some occasions, he also works as a motivational speaker.

While Kiyosaki has gained success with his extensive body of work, he has also drawn consistent criticism for what are viewed by some as problematic financial advice and unconventional business practices.

He actively warns against investing in traditional stocks and bonds, and has been a vocal supporter of owning 'real assets' such as real estate, precious metals like gold and silver, and cryptocurrencies like Bitcoin.

Robert Kiyosaki: How His $1.2 Billion Debt Becomes The Bank's Problem

According to various reports, Kiyosaki's substantial borrowing is part of his unconventional strategy. He has structured this colossal debt so that the downside risk lies with the bank or lender, not himself.

He openly views his debt—which he stated was over $1 billion in November 2023—as a smart financial tool rather than a liability. He proudly discussed his debt philosophy in a video posted on X (formerly Twitter).

Kiyosaki champions what he calls 'good debt'—loans used to acquire income-generating assets such as real estate, businesses, and investments. His approach is founded on decades of investing lessons, emphasising leveraging assets, utilising other people's money, and allowing large institutions to bear the inherent risk.

He leans into the idea of systemic financial fragility: if his loans are sufficiently large, a default on his part could send significant ripples through the bank or lending institution. Therefore, if he were to fail, the banks would be compelled to save him by deploying their 'brightest minds' from institutions like Oxford and Stanford to make the failing asset profitable.

Naturally, not everyone in the financial community takes Kiyosaki's comments at face value. Online forum discussions on Reddit and Elite Trader about his remarks include scrutinous comments, with some professionals arguing that he should not be taken seriously.

For loyal readers of Rich Dad Poor Dad, however, Kiyosaki's proclamation is simply an extension of his established brand, reinforcing the idea that debt is not inherently bad; it is leverage.

His statement also raises important questions about transparency: while he publicly declares the debt number and the philosophy behind it, the exact breakdown of the assets and liabilities backing the $1.2 billion is not publicly known.

His willingness to make such an audacious public statement appears to be entirely aligned with continuously promoting his brand of unconventional wealth-building and challenging traditional financial norms