I Owe $1.2 Billion on Purpose (Here’s Why It Makes Me Richer) – Robert Kiyosaki
Good debt vs bad debt is the difference between building wealth and staying stuck in the financial rat race.
In this episode of The Rich Dad Radio Show, Robert Kiyosaki challenges one of the most common beliefs about money: that all debt is bad. Drawing from lessons he learned from his Rich Dad, Robert explains why he intentionally uses debt to acquire cash-flowing assets and why he believes the wealthy understand debt differently than most people.
Robert begins by explaining how the monetary system changed after the U.S. left the gold standard and why inflation affects savers and borrowers in very different ways. He then breaks down 10 ways debt can be used to build wealth, increase cash flow, expand investment opportunities, and acquire appreciating assets.
You'll learn:
• The difference between good debt and bad debt
• Why inflation impacts borrowers and savers differently
• How fixed-rate debt can become easier to repay over time
• Why cash-flowing real estate benefits from leverage
• How rising rents can increase cash flow while mortgage payments remain fixed
• Why wealthy investors use debt instead of selling assets
• How leverage magnifies investment returns
• The role taxes play in wealth building
• Why liquidity creates new investment opportunities
• How borrowing against appreciating assets can accelerate portfolio growth
Most importantly, Robert explains the distinction between debt that produces income and debt that consumes income. According to Rich Dad principles, good debt is backed by assets that put money in your pocket, while bad debt is used to purchase liabilities that take money out of your pocket every month.
Whether you agree with Robert's views or not, understanding good debt vs bad debt can help you think differently about leverage, investing, and long-term wealth creation.
00:00 Introduction
01:21 Debt Free Myth
02:42 Money Rules Changed
02:58 Nixon Shock 1971
08:04 Rent Gap and Leverage
09:54 Tax Code Rewards Debt
11:10 Watchdog vs Wolf Setup
14:30 Inflation Transfer and Machine
17:06 Good Debt vs Bad Debt
18:35 Final Challenge and Close
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Disclaimer: The information provided in this video is for educational and informational purposes only. It should not be considered as financial advice or a recommendation to buy or sell any financial instrument or engage in any financial activity.
The content presented here is based on the speaker's personal opinions and research, which may not always be accurate or up-to-date. Financial markets and investments carry inherent risks, and individuals should conduct their own research and seek professional advice before making any financial decisions.
Cameron Long
Cameron is a seasoned CFO and CPA with 31 years in finance. He created the AI Trader's Playbook to help everyday investors use AI to find high-confidence trades — in minutes, not hours.
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Thank you
🗣️🗣️🗣️ LORD WE THANK FOR REV ROBERT KIYOSAKI FOR TEACHING THE GOOD NEWS OF MONETARY POLICY!!! 🏃🏾➡️🏃🏾➡️🕺🕺🙌🏽🙌🏽🙌🏽👋🏽👋🏽👋🏽 THANKYOU JESUS SOMEONE IS FINALLY TEACHING THE TRUTH 🙏🏽🙏🏽🙏🏽❤️❤️❤️🙌🏽🙌🏽🙌🏽👋🏽👋🏽
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“It’s a lesson I learned too late. During my school and college years, I never understood assets and liabilities because my teachers taught me the wrong lessons about them.”you are the best financial educator and investors in the world.
if i was smart I’d borrow from Japan and buy American bonds, but then i would probably get bombed if the US goes bankrupt… oh wait…
Robert is talking about good debt, not bad debt.
1. Good debt makes u rich.
2. Bad debt keeps u poor.
What’s the difference?
The direction of cash flow is the difference.
God bless u and Kim, Robert.
Forever grateful to you both.
🙏🙏🙏
Can’t hype this video 🤸 definitely take notes!
Well, sweetheart, the bank may have a problem, but you don’t. God be with you always always in my heart.😘
Thanks for your chance my life
All this is great in an environment when interest rates are going down
What would happen if interest rates get up to 20% will they take all your properties?
They could 100% easily take them if they wanted. You essentially need to become a slave to the banks to stay in business.
You are really giving back sir
Thanks once again for the financial information Robert Kiyosaki and Rich Dad Team.
I don’t get when he says the mortgage stays the same but rent goes higher… guess it depends where you live but where I live in South Africa, the mortgage payment rises with the interest rate.
Good debt is paradigm shift to leverage.
ROBERT KIYOSAKI ❤❤❤
Does Dave Ramsey borrow for his rentals?
Where do you get an affordable debt from?😊
read book Smart Broke Dumb Rich by Zor Veyl on a flight next to a guy in a suit. he peeked at the cover and looked away fast. that look told me more than any review
they’ll teach a 16 year old how to write a resume but not how compound interest works against you. book Smart Broke Dumb Rich by Zor Veyl was the first time someone explained whose side the bank is actually on