'Rich Dad, Poor Dad' Author Robert Kiyosaki Reveals $1.2 Billion Debt

Robert Kiyosaki, author of the bestselling personal finance book Rich Dad Poor Dad, is back in the spotlight after repeatedly saying he is carrying $1.2 billion in debt. But the eye-catching figure comes with a major qualification: it does not represent $1.2 billion that Kiyosaki personally owes from his own balance sheet.

The 79 year old financial educator has used the figure to illustrate his long standing belief that debt can be a tool for building wealth when it is used to acquire income generating assets. In a recent appearance on the Get Rich Education podcast, Kiyosaki said he was “a billion two in debt” while warning listeners not to copy his strategy without understanding how debt works.

The latest explanation comes from his former wife and business partner, Kim Kiyosaki. Speaking to Vanity Fair, she confirmed the $1.2 billion figure but said the debt is connected to real estate investments held with partners, rather than being a $1.2 billion personal liability for Robert.

The portfolio involves roughly 1,500 apartment units, with borrowing attached to the properties and investment structures that own them. Vanity Fair estimated that Kiyosaki’s own share of the debt could be somewhere between $30 million and $60 million, although that is an estimate rather than a publicly audited figure.

That distinction is central to Kiyosaki’s financial philosophy. He has long promoted what he calls “good debt”: borrowing money to purchase assets capable of producing income or increasing in value. Rental properties are a prime example because rental cash flow can potentially help service the underlying loans while the investor retains equity and any future gains.

By contrast, Kiyosaki has traditionally labelled borrowing for depreciating consumer purchases, such as expensive cars, as “bad debt.”

His investment strategy also involves using separate LLCs and investment entities, which can create legal separation between different properties and ventures. However, such structures do not automatically eliminate personal liability, since individual exposure depends on the terms of each loan and any guarantees attached to it.

Kiyosaki's financial career has itself had setbacks. His company Rich Global LLC filed for bankruptcy in 2012 following a court ordered payment of millions of dollars to a former business partner. Nevertheless, Rich Dad Poor Dad, first published in 1997, has sold more than 44 million copies, cementing Kiyosaki's influence in personal finance.

The latest $1.2 billion disclosure therefore tells a more complicated story than a headline about a billionaire drowning in personal debt. For Kiyosaki, the central question is not simply how much debt an investor has, but what that debt is financing.

At the same time, his strategy carries significant risks. Real estate loans remain obligations even when property values fall, rental income weakens or financing costs rise. Kiyosaki himself has cautioned that investors should not replicate his highly leveraged approach without proper education.