The author who taught how to get rich sinks into $1.2 billion in debt

Robert Kiyosaki is a famous motivational writer known worldwide for his books on financial literacy. He has taught readers how to properly manage money, increase income, and achieve financial freedom. However, he himself has now fallen into massive debt. Kiyosaki announced that he has a debt of $1.2 billion.

His most famous work, the 1997 book "Rich Dad Poor Dad", has been published in over 32 million copies, sold in more than 100 countries, and made it to the New York Times bestseller list. The work has also been endorsed by public figures like Oprah Winfrey.

Kiyosaki’s core teaching is simple: a person should not rely solely on a salary, should own assets that generate money, and should use debt capital when necessary. He has also recommended investing in real estate, gold, oil, and other resources.

Where did the $1.2 billion debt come from?

Speaking on The Iced Coffee Hour podcast, Kiyosaki openly stated that he owes $1.2 billion. However, not all of this amount is his personal debt. The bulk of the debt is associated with real estate assets that he co-owns with partners.

According to Vanity Fair estimates, Kiyosaki's personal debt is around $30–60 million.

The writer does not consider large debt to be a financial disaster. He explained his perspective with the following thought:

"If you owe the bank $20 million, that's your problem. But if you owe the bank $1 billion and can't pay it back, that's the bank's problem."

According to Kiyosaki's model, assets can be purchased using debt, and then the income generated from them covers the debt obligations. However, experts remain skeptical about the safety of such an approach due to inflation, market volatility, and fluctuating real estate values.

There are also criticisms of Kiyosaki's teachings

"Rich Dad Poor Dad" has been criticized by experts for factual errors, overly simplified conclusions, and the fact that certain events do not fully correspond to reality.

Nevertheless, this did not seriously affect Kiyosaki's popularity. He has published over 20 books and continues to earn income through podcasts, webinars, courses, and educational games.

The author's financial standing is also reflected in his lifestyle. According to Vanity Fair, Kiyosaki purchased his luxurious Moroccan-style residence for $4.5 million three years ago.

In his book, Kiyosaki mentions businessman Richard Kimi as his "rich dad." Although the author wrote in the book that Kimi had passed away, Kimi actually died 11 years after the book was published.

Another interesting detail is that, according to Vanity Fair, the funding for Kiyosaki's first business—producing wallets—was provided by his own father. Yet, in the book, he portrayed his father as a financially unsuccessful person.

Kiyosaki's relationship with Donald Trump is also noteworthy. They co-authored two books in 2006 and 2011. Kiyosaki still refers to Trump as his "friend."

Nevertheless, the writer has no intention of abandoning his philosophy. According to his ex-wife Kim, when she asked Robert when he would retire, Kiyosaki gave the same answer twice:

"I love teaching."

Thus, Kiyosaki’s $1.2 billion debt—he who promoted financial literacy—has once again brought his own teachings to the center of discussion.