For close to three decades, millions of people around the world have put their faith in Rich Dad Poor Dad as the go-to book for financial literacy. Now, its author, Robert Kiyosaki, has revealed that he is USD 1.2 billion in debt, which, besides curiosities around his net worth, begs the question: How did the author of a bestseller in personal investment get saddled with so much debt?
Everything about Kiyosaki revolves around the famous book he wrote and the seminars in which he dispensed insights into personal finance, investment, financial literacy and economics.
All about Robert Kiyosaki, his debt and net worth
Early life of struggle
Kiyosaki was born on 8 April 1947 in Hilo, Hawaii, the US, into a family of Japanese descent. According to a June 2002 profile on Hawaii Business, he attended the Merchant Marine Academy at King’s Point in New York and later joined the US Marine Corps.
In an interview on Indian YouTuber Ranveer Allahbadia’s channel, The Ranveer Show, in September 2023, Kiyosaki revealed that he served as a helicopter pilot during the Vietnam War and went down three times. He said that he came back to the US in 1972 and found that he had lost friends who were opposed to the war.
Kiyosaki later enrolled on an MBA programme at the University of Hawaii but did not complete it. He then worked various jobs, including in sales at Xerox. In 1977, he founded a company called Rippers that made surfer-style nylon and Velcro wallets. Though there was praise for the products, the company went bankrupt.
It was after the dissolution of the company that Kiyosaki started investing in real estate and small-cap stocks. But even there, he faced ups and downs to the point where he was nearly bankrupt. He said that he owed somewhere between USD 750,000 to USD 850,000 at the time.
To repay the money, he tried launching various businesses. But each of them failed.
Rise of Robert Kiyosaki as a bestselling author
In 1985, a struggling Robert Kiyosaki started an education company that would teach financial literacy and give investment ideas to students internationally. That company eventually became Cashflow Technologies, Inc., the holding company of the Rich Dad brand and other similar brands in the mid-1990s.
Kiyosaki published his first book, If You Want to Be Rich and Happy, Don’t Go To School, in 1993. In the book, Kiyosaki criticised the education system and argued that it prevented students from learning how to manage their finances.
Inspired by the positive reception it got, he started working on Rich Dad, Poor Dad. In an Instagram post in May 2022, he said that he wrote the book at OK Street Jailhouse Hotel in Bisbee, Arizona.
“Although no longer operating as a hotel, I wanted to come see the building where I was inspired over 25 years ago. The building was once owned by John Wayne!” he captioned the post, which showed a picture of the building.
His life changed overnight with the publication of Rich Dad, Poor Dadin 1997, which he co-authored with Sharon Lechter.
The New York Times listed it as a bestselling book — a status it maintained for about nine years from 2000 to 2008. The book projected Kiyosaki as something like an investment tsar in the eyes of the hoi polloi, many of whom, even to this date, rely on books to learn how to manage their money.
Rich Dad, Poor Dad: What is it about?
In Rich Dad, Poor Dad, Kiyosaki tells his own life story by comparing the world of his poor father to the world of a childhood friend’s rich father. He tried to show how and why his father, despite being a PhD, could not build wealth for himself whereas his friend’s father, despite not having similar high educational qualifications, was swimming in money.
Universally hailed as one of the most famous financial-planning authors in contemporary times, Kiyosaki (and Lechter) share stories for readers on how to live a good life with a perfectly planned financial strategy.
In the book, Kiyosaki reveals parts of his personal life as well as the lessons he learned about money from the lives of his own father and that of his friend.
Kiyosaki tries to explain that money management rather than having too much money is the key to creating wealth.
He, however, had some difficulty in trying to publish the book. When no one was willing to do so, he printed 1,000 copies on his own and distributed them. That initial print became a runaway success and brought the book to the attention of the late Rick Wolff of Warner of AOL Time Warner, who subsequently began publishing Rich Dad, Poor Dad internationally.
The book has since been translated into 38 languages and has sold over 40 million copies worldwide.
Though it has been a major success, the book has also been criticised by many. Some allege that Kiyosaki has oversimplified the concept and is vague about several things. Others have found issues with some claims in the book, which they say are undocumented.
Nevertheless, as an author, Kiyosaki has published over 25 books, including those with former US President Donald Trump. His recent works include Who Stole My Pension?: How You Can Stop The Looting(2020) and Capitalist Manifesto: Money for Nothing – Gold, Silver, and Bitcoin For Free(2022).
What is the actual net worth of Robert Kiyosaki and how he made it?
There is no clarity on the actual net worth of Robert Kiyosaki.Celebrity wealth tracker, Celebrity Net Worthclaims that the Japanese-American author and entrepreneur has a net worth of around USD 100 million.
One of his major sources of revenue is in the form of royalties from the books he has written. Other sources of revenue include the income generated from his seminars and the income from licensing rights granted to individuals and groups who wish to use the Rich Dad brand name for marketing purposes.
But in multiple videos that have gone viral on Instagram, Kiyosaki can be seen saying that he is “a billionaire in debt.”
“If I go bust, the bank goes bust. Not my problem,” he said in one of the videos.
The word ‘debt’ has a negative perception, which means that some see Kiyosaki as someone who is struggling.
“The reason I am so rich is because I am in debt. The reason I pay no taxes is because I borrow money. I am a debtor…I get tax breaks,” Kiyosaki explains in one of the videos.
He says that he understands that most people can’t handle debt, but blamed it on the lack of financial education in school.
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In another video, Kiyosaki says that he is against the cash savings ever since the US dollar was detached from the gold standard during President Richard Nixon’s tenure in 1971.
“I use debt as money and I don’t save cash,” he said.
“All the cash I make, I convert to silver and gold. I don’t trust the dollar and, therefore, I own Bitcoin also,” added Kiyosaki.
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What does Kiyosaki own and what are his investments?
In one of the videos, Robert Kiyosaki says he owns a Ferrari and a Rolls-Royce which he bought by borrowing money. Although both are fully paid off, he reveals, they still, qualify as liability and not an asset.
He also owns real estate and businesses, which are income-generating assets. In other words, the assets were built by borrowing money. The loan was paid off from the income generated by the assets, which, according to Kiyosaki, is an efficient way to tackle market fluctuations.
He has previously said that he owns 15,000 houses, which he bought using debt and then rented them out. The money generated is used to repay the debt, and he pays no taxes.
“Today, I own 15,000 rental apartments, generating approximately USD 20 million in monthly income, all with minimal tax liability,” he said.
Back in 2022, he said in an interview with Stockpulse at the Vancouver Resource Investment Conference that he owns tonnes of gold and silver.
“I don’t own any copper. I own a lot of silver. I found a silver mine in Argentina and Yamana Gold (Canadian mining company) bought it from me,” he said.
Bitcoin is a major investment that he has made. The world’s most famous cryptocurrency has seen extreme volatility in the last couple of years, largely due to the fluctuating fortunes of the cryptocurrency market overall, but is still going strong. As of 5 January 2024, 1 Bitcoin is worth USD 43,665 — almost 1.5 times its value six months ago.
One of his most unusual investments is wagyu cattle. Kiyosaki revealed this during a talk on Wealthion ShortsYouTube channel.
Revealing that he discovered wagyu when a friend mentioned it to him, Kiyosaki said, “I was up in Wyoming inspecting this wagyu bull, and the good thing about it is that it’s a real Japanese wagyu bull. There are American wagyu bulls and Japanese wagyu bulls, (…) wagyu is a brand like Ford or Chevy.”
Wagyu is called the “caviar of beef” by the Michelin Guide. It literally means ‘Japanese cow’ and is known for having the highest levels of marbling and tenderness. In fact, all the world’s most expensive steak cuts are wagyu, with prices of the best grades going as high as USD 2,200 per kg.
In the Wealthion Shortsvideo, Kiyosaki says, “I don’t want to own the cattle. I just want to own the sem*n.” The reason, he underlines, is that he wants to be a “Japanese breeding bulls.”
(Hero and Featured image credit: The Rich Dad Company)
Frequently Asked Questions (FAQs)
– What is the net worth of Robert Kiyosaki?
The exact net worth of Robert Kiyosaki is not clear. Some reports indicate that his fortune is worth USD 100 million. But he has admitted he is over a billion dollars in debt.
– Does Robert Kiyosaki own 15,000 houses?
According to Robert Kiyosaki, he owns 15,000 houses.
– Is Robert Kiyosaki in debt?
Yes, he has admitted to being a billion dollars in debt.
– How did Kiyosaki become rich?
Kiyosaki started amassing wealth with the phenomenal success of his best-selling book, Rich Dad, Poor Dad.
The information in this article is accurate as of the date of publication.
