‘Rich Dad Poor Dad’ Author Robert Kiyosaki Says He Is $1.2 Billion in Debt

Robert Kiyosaki, the bestselling author of “Rich Dad Poor Dad,” has revealed that he is associated with roughly $1.2 billion in debt, a figure that has sparked attention because of his long-standing teachings about building wealth. But there is an important catch: the $1.2 billion does not represent money Kiyosaki personally owes.

The debt is largely connected to a portfolio of real-estate investments that Kiyosaki owns with business partners, including roughly 1,500 apartment units, according to his former wife and business partner, Kim Kiyosaki.

Kiyosaki has openly discussed the figure, including during an appearance on the Get Rich Education podcast. He described himself as being about $1.2 billion in debt and explained that he has deliberately used borrowing as part of his investment strategy.

Rather than viewing all debt as negative, Kiyosaki distinguishes between what he calls “good debt” and “bad debt.” His strategy involves borrowing money to purchase assets such as income-producing real estate. When those properties increase in value, investors can borrow against the increased equity instead of selling the assets.

Kim Kiyosaki has provided additional context around the eye-catching $1.2 billion figure. She explained that the debt is attached to real-estate investments held with partners. As a result, Kiyosaki’s personal exposure is believed to be significantly smaller than the headline figure.

Reports citing Vanity Fair estimate his individual share of the debt at somewhere between $30 million and $60 million, although the exact figure has not been independently established. The investments are also structured through separate business entities, helping to separate individual investors from the liabilities attached to particular properties.

For Kiyosaki, the size of the debt is less important than what the borrowed money is used for. His argument is that borrowing to acquire assets capable of generating income can potentially build wealth, while borrowing to finance consumer spending can create financial pressure without producing additional income.

However, Kiyosaki has also warned people not to simply copy his strategy. He has stressed that using large amounts of leverage requires financial knowledge and an understanding of the risks involved.

That distinction is important because leverage can amplify both gains and losses. A fall in property values, rising borrowing costs or reduced rental income could put heavily leveraged investments under significant pressure.

Kiyosaki has spent decades promoting financial education through his books, businesses and media appearances. His 1997 book “Rich Dad Poor Dad” became one of the world’s best-known personal-finance books, built around the idea that wealthy people think differently about assets, income and debt.