“I use debt as money and don’t save cash because in 1971 the dollar became debt,” said “Rich Dad, Poor Dad” author Robert Kiyosaki. Matt Carasella-Patrick McMullan/Getty Images
For the average person, being deeply in debt can feel like a crushing burden – but not for Robert Kiyosaki, author of “Rich Dad, Poor Dad.” The financial guru has a rather indifferent attitude towards borrowing large amounts from banks and recently boasted that he has over $1 billion in debt hanging over his head.
“I use debt as money and don't save cash because the dollar became debt in 1971,” he added, referring to the Nixon shock in which the former president ended the convertibility of the U.S. dollar into gold, the currency devalued and… ultimately led to the rise of cryptocurrencies.
Instead, Kiyosaki uses debt to buy assets like gold that can withstand market crashes and rising inflation – as opposed to cash saved in the bank.
“If I go bankrupt, the bank goes bankrupt,” he added. “Not my problem.”
Living debt-free is “the worst advice you can give”
While a debt-free life is a pipe dream for many, it's “the worst advice you can give anyone today,” Kiyosaki emphasized in another Instagram Reel last week.
“Biden printed $10 trillion, oil prices are going up… Why should I save money?”
In recent interviews he has also repeatedly warned of an impending banking crisis, inflationary pressure and a stock market crash.
This is why, he claims, he buys oil wells instead of oil reserves, saves gold and silver coins and deposits them outside the United States.
“Our banks are crashing,” he further explained in an interview on the Disruptors podcast, adding that this results in banks being unable to lend money, leading to a crash in the economy.
“So the people who are going to win are people who have gold and silver.”
But be careful: there is such a thing as bad debts
While Kiyosaki largely agrees that having certain debts is a good thing, that doesn't mean you have his approval to put anything and everything on your credit card.
While he recommends using debt to purchase assets, he opposes borrowing to purchase material goods that neither increase in value nor pay dividends.
“A lot of people use debt to buy liabilities,” he said. “I drive a Ferrari. Guess what? It is 100% paid off as it is a liability. I drive a Rolls Royce. It is 100% paid off as it is a liability.”
His advice recently inspired “Love is Blind” reality TV star Nancy Rodriguez to pay off her “bad debt” and instead redirect her investment into real estate that can eventually pay off.
“Knowing that I had $100,000 to my name was probably one of the scariest things,” she told Fortune.
“I think it was really an understanding that I needed to be uncomfortable for a temporary moment in order to achieve long-term satisfaction that led to me being debt-free.”
Fortune has reached out to Robert Kiyosaki for comment.