Why a Billionaire Carries $1.2B in Debt (And You Might Want to Listen)

Robert Kiyosaki just dropped a mindset that breaks conventional wisdom: debt made him rich, not poor.

The Rich Dad Poor Dad author revealed he carries $1.2 billion in debt—but here’s the twist. He’s not drowning in it; he’s leveraging it strategically.

The Core Strategy

The difference? Most people use debt to buy liabilities (cars, luxury goods). Kiyosaki uses it to buy assets (real estate, investments that appreciate).

“I drive a Ferrari and Rolls Royce, both paid off 100%, because they’re liabilities,” he explained. “But I borrow money to buy real estate and businesses.”

The Tax Angle Nobody Talks About

Here’s where it gets interesting: investment debt is often tax-deductible. “I pay no taxes because I borrow money,” Kiyosaki said. It’s legal tax optimization through strategic leverage.

The Macro Play

He doesn’t trust fiat currency—he converts earnings into silver, gold, and Bitcoin. His logic? If the dollar crashes, so does the bank’s ability to collect debt. It’s a hedge against currency devaluation.

The Reality Check

This strategy works if your borrowed money generates returns faster than interest accrues. It’s high-risk, requires deep market knowledge, and isn’t for average investors. But it perfectly illustrates why the wealthy think differently about debt than everyone else.