Someone who teaches others about "financial freedom"—but who is personally in debt by $1.2 billion? (Rich Dad, Poor Dad) An unexpected twist lesson from the author

The world’s leading book for financial intelligence enlightenment (Rich Dad, Poor Dad) author Robert Kiyosaki has recently been trending again. This time it’s not because of his investing quotable lines, but because of a single statement—this past June, the 79-year-old Kiyosaki, in a podcast, casually said: "My debt is $1.2 billion."

A financial intelligence “godfather” who built his career by teaching people to "get out of debt and achieve financial freedom"—yet he himself carries $1.2 billion in debt. This contrast is enough to make everyone stop and ask: What exactly happened?

Let’s start with the conclusion: this is an intentionally exaggerated number, but behind it lies the logic he truly wants to teach.

Kiyosaki’s ex-wife and longtime business partner Kim Kiyosaki later clarified to *Vanity Fair*: the $1.2 billion was not a personal loan Kiyosaki owed to the bank, but the total debt carried by real estate projects jointly owned by him and a group of partners. Specifically, Kiyosaki and his partners collectively owned about 1,500 apartments, and the mortgages on those apartments did indeed add up to $1.2 billion, but each loan was backed by corresponding property collateral and covered by rental income. The portion that actually landed on Kiyosaki personally was much smaller. *Vanity Fair* estimated that if Kiyosaki’s claim of earning about $3 million a year is true, his personal share of the debt may have been only $30 million to $60 million.

In other words, “$1.2 billion in debt” is more like a deliberately created hook for discussion. Kim Kiyosaki herself said that Kiyosaki likes to “say shocking things”—first startling people, then slowly explaining his point.

So what is he trying to say?

Kiyosaki says he has been studying how to “use and manage debt” since 1974. In his view, there are two kinds of debt: one is consumer debt, such as swiping a credit card to buy bags, cars, and indulge in eating and entertainment. This kind of debt is a liability; the more it snowballs, the poorer you become. The other is investment debt, such as borrowing money to buy assets that continuously generate cash flow. As long as the rent covers the monthly payment and the asset keeps appreciating, this debt is effectively “making other people’s money work for you.”

This is an extension of that famous line in *Rich Dad Poor Dad*: “Poor dad” works for money, while “rich dad” makes money work for him—and that includes making debt work for him. So Kiyosaki deliberately shouted “$1.2 billion” as loudly as possible; in essence, it was a piece of performance art.

But the cold water poured by the experts is something you have to take on as well.

Can ordinary people copy Kiyosaki’s approach? John Phelps, founder of Arizona-based financial advisory firm JPTD Partners, takes a clearly cautious stance. He reminds investors: when debt reaches the scale of $1.2 billion, they “had better be very clear about what they are doing.”

The essence of leverage is that it cuts both ways—when home prices rise and rents are stable, it can multiply gains; but once prices stop rising, interest rates climb, or rental income falls, it can just as easily multiply losses. Phelps specifically warned that the “rich dad debt” Kiyosaki talks about could quickly become a bankruptcy risk for ordinary investors who lack experience and risk tolerance.

Put simply, Kiyosaki can handle the swings of $1.2 billion because he has cash flow from 1,500 apartments, decades of experience, and enough of a buffer. As for you, you might not even be able to handle missing payments on a single house.

This news has made many people only see the thrill of the “reversal” and the “face slap.” But if you think a little deeper, it is actually a more sober lesson in financial intelligence:

First, don’t just look at the surface of the numbers. Something all called “debt” can be either a bottomless pit or an asset. The key is not whether there is debt, but what lies behind it and who is carrying it.

Second, don’t blindly worship “legends.” Kiyosaki’s path had its own historical conditions and professional barriers; simply copying it onto yourself is the biggest risk.

Third, leverage is always a double-edged sword. The most important thing ordinary people should learn is not how to use leverage, but how to protect their principal first and understand their own limits.

Kiyosaki has spent his life selling the dream of “financial freedom,” but he himself knows best: true freedom has never been about having no debt, but about having the ability to manage risk—and to afford to lose.#黄金