The author of the book 'Rich Dad, Poor Dad' is currently in debt of over 1 billion USD: 'That's a matter for the banks'

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Robert Kiyosaki, the author of the renowned book 'Rich Dad, Poor Dad,' is often seen with an attitude towards money that shows no hesitation in approaching banks for substantial loans. Most recently, this celebrated author and founder of the Rich Dad Company, which offers investment and personal finance management classes, boasted about being indebted to banks for over 1 billion dollars.

Kiyosaki declares, 'I use debt as money, and I don't hold cash, because in 1971, the US Dollar became debt.' The event this financial self-help author wants to reference is the time when President Richard Nixon separated the US dollar from the gold standard, a unilateral action that devalued the US dollar, targeting Japan and Western European countries.

Instead of hoarding cash, Kiyosaki opts to borrow to acquire assets with solid value regardless of whether the economy is stable or showing signs of decline. Assets like these are almost unaffected even when inflation exceeds the control of central banks. Gold is an example.

Kiyosaki says, 'If I go bust, then the bank goes bust too. That's not my problem.'

For many, a debt-free life, owed to no one from banks to lenders, is a dream. But last week, Kiyosaki stated on Instagram: 'Living without debt is the worst advice I've ever seen. President Biden has already planned to print $10 trillion in cash to circulate outside the market, crude oil prices are rising... So why should I save cash?'

The author of the famous financial book also raises some cautionary points in recent interviews, such as concerns about another banking system crisis, pressures amidst high inflation, and the possibility of a stock market crash in the near future. That's why Kiyosaki advocates for buying actual oil wells as assets rather than oil company stocks, purchasing gold and silver instead of holding cash, and keeping them outside the US territory.

Kiyosaki's perspective is somewhat pessimistic about the economic outlook of the US. In a recent podcast, he mentioned how banks are no longer able to lend, causing economic stagnation, and he believes: 'Our banks are collapsing. So those who are secure in the future are those who are hoarding gold and silver.'

Setting aside Kiyosaki's advice on borrowing from banks to acquire secure assets, let's talk about a concept called bad debt beforehand. The author himself also says that buying secure assets is good, but don't buy them with credit cards. And most importantly, don't borrow from banks to buy 'consumer' items that don't generate value or benefit oneself:

'Many people borrow to buy items considered debt or consumer assets. I'm driving a Ferrari, paid in full, not on installments because it's a consumer asset. My Rolls-Royce is the same, paid 100% in full.'

According to Fortune

Các câu hỏi thường gặp

What does Robert Kiyosaki mean by using debt as money?

Robert Kiyosaki believes that debt can be a tool for acquiring valuable assets rather than being a financial burden. He emphasizes that since the US Dollar became debt-based in 1971, leveraging debt to buy solid assets like gold is a more strategic approach than holding cash.

Should I avoid living a debt-free life according to Kiyosaki?

No, Kiyosaki suggests that living completely debt-free may not be wise. He argues that in the current economic climate, borrowing money to invest in secure assets like gold and oil wells can provide better financial security than hoarding cash.

What types of assets does Kiyosaki recommend investing in?

Kiyosaki advocates for investing in tangible assets such as gold, silver, and oil wells. He believes these assets hold value even in unstable economic conditions and can safeguard wealth against inflation and economic downturns.

Why does Kiyosaki caution against using credit cards for asset purchases?

Kiyosaki warns against using credit cards to buy assets because they often lead to bad debt. He emphasizes that investments should be made using available cash or borrowing for secure, income-generating assets rather than consumer items that don’t provide value.

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