In his debt philosophy, Mr. Kiyosaki emphasized the importance of distinguishing between assets and liabilities. He revealed that, contrary to popular belief, his expensive cars, including a Rolls-Royce and a Ferrari, are fully written off. He believes that while many people use debt to accumulate debt, he intentionally uses it to invest in assets.
Overturning conventional wisdom about savings
Mr. Kiyosaki questioned his money-saving habits and expressed doubts about traditional savings methods. He cited the U.S. dollar's departure from the gold standard in 1971, when President Richard Nixon was in office. With a staggering $1.2 billion in debt, Kiyosaki said he prefers to keep his gold and turn the proceeds into precious metals rather than hoarding cash.
Kiyosaki boldly asserted in an Instagram video, “If I fail, the bank fails too. It's not my problem,” emphasizing his non-traditional approach to debt.
The role of quality debt in wealth creation
In a recent podcast, Disruptors, Kiyosaki further delves into his debt philosophy, categorizing debt into good and bad. He attributed his wealth to good debt and said that the loans used to generate his income helped him achieve financial success. Additionally, he encouraged people to view debt as leverage, especially when investing in real estate. “I'm $1 billion in debt because debt is money,” Kiyosaki unashamedly declared on his podcast, reiterating his unconventional perspective on the financial landscape.FAQ:
Q1: Why does Robert Kiyosaki consider his luxury car a liability?
A1: Because Mr. Kiyosaki views assets and liabilities from a unique financial perspective, he considers a paid-off luxury car to be a liability, contrary to conventional thinking.
Q2: What does Robert Kiyosaki recommend instead of saving cash?
A2: Kiyosaki advises avoiding hoarding cash, as he is skeptical about the stability of the US dollar, preferring instead to store gold and turn the proceeds into precious metals.
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