Feb 10, 2025
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Robert Kiyosaki, author of the bestselling book ‘Rich Dad, Poor Dad’, publicly challenged finance guru Dave Ramsey on X.com. Kiyosaki proudly proclaimed his $1.2 billion debt, challenging the conventional wisdom that it’s better to be debt-free.
In March, Kiyosaki posted: “My friend Dave Ramsey says ‘Live debt free.’ I say ‘I use debt to invest. I am $1.2 billion in debt.’ Again, who is right?”
Kiyosaki champions an investment philosophy that leverages debt, not as a burden but as a tool to build wealth by investing in tangible assets such as precious metals.
In a blog post he reinforced his philosophy on money, writing, “Why do you want to achieve financial independence? For many, it's more than just about money. It's about freedom and security, especially when life throws unexpected challenges your way.”
This dual focus on freedom to spend and security to weather financial storms contrasts with Ramsey’s emphasis on achieving financial security through strict debt elimination.
So, is Kiyosaki’s debt-driven strategy a viable path to building wealth?
If you want to invest like Kiyosaki without going into a billion dollars of debt, here’s where you can start.
Precious metals, like gold and silver, are widely favored as safeguards against inflation and economic instability. Kiyosaki agrees with this, acknowledging the U.S. dollar’s disconnection from the gold standard since 1971 during the presidency of Richard Nixon.
In October, Kiyosaki predicted, “Gold will soon break through $2,100 and then take off. You will wish you had bought gold below $2,000. Next stop, gold $3,700.”
Currently, gold is sitting at roughly $2,860 an ounce.
You can take advantage of the long-term market potential of this precious metal by starting a Precious Metals IRA with help from Thor Metals.
Enabling investors to include gold or silver in their portfolio, a Precious Metals IRA can be a secure and stable investment option, enhancing diversification and safeguarding your cash value against economic uncertainties.
Thor Metals offers expert guidance and secure storage of your precious metals assets in partnership with top-tier, IRS-approved depositories.
Plus, their investment guides help you to better understand the market and make sound decisions about your investments. Get your free guide today to find out if a precious metals IRA is the right investment option for you. The tax-advantaged account can help you boost your savings and retire comfortably.
If you want to learn more, you can get Thor Metals' gold and silver information guide for free.
Who’s right?
If you’re not an expert like Kiyosaki and Ramsey, deciding how to handle debt or what portfolio moves you should make can be a challenging task.
If you are seeking an easy way to get the latest market insights and picks from experts, Moby might be a valuable tool.
Moby’s team of former hedge fund analysts and experts provide superior research and stock picks that have outperformed the S&P 500 index by an average of roughly 12%.
You can sign up and become a wiser investor in just five minutes.
If you’re unsure about where you fall on the debate between Kiyosaki and Ramsey, it might make sense to get a take from a qualified financial professional.
Kiyosaki often urges his followers on X to be cautious when choosing a financial advisor. Urging people to be cautious of the intentions of their advisors, part of a February post from Kiyosaki reads: “Don’t be a loser. Choose your financial advisors carefully.”
There are free online services that are designed to match you with experienced professionals based on your unique needs.
With Vanguard for example, you can connect with a personal advisor who will help assess your portfolio and ensure you meet your financial goals in time for retirement.
Vanguard’s hybrid advisory system combines advice from professional advisors with automated portfolio management to make sure your investments are working to achieve your goals.
All you have to do is fill out a brief questionnaire about your financial goals, and Vanguard’s advisors will help you set a tailored plan and stick to it.
Once you’re set, you can sit back as Vanguard’s advisors manage your portfolio. Because they’re fiduciaries, they don’t earn commissions, so you can trust that the advice you’re getting is unbiased.
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Managing high-interest debt
While Kiyosaki advocates using debt to acquire assets, it’s important to remember that this approach carries many inherent risks. For example, high-interest credit card debt is not the kind you want hanging over your head, as it can quickly become unmanageable.
If you are buried in this type of debt, an online marketplace called Credible can help you consolidate to tackle it more efficiently.
Credible helps you to find the lowest interest rates on loans up to $100,000. Instead of throwing away your hard-earned money on multiple interest payments, Credible allows you to combine all your debt into one monthly payment, instead of juggling multiple lenders with different interest rates.
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Victoria Vesovski is a Toronto-based Staff Reporter at Moneywise, where she covers the intersection of personal finance, lifestyle and trending news. She holds an Honours Bachelor of Arts from the University of Toronto, a postgraduate certificate in Publishing from Toronto Metropolitan University and a Master’s degree in American Journalism from New York University’s Arthur L. Carter Journalism Institute. Her work has been featured in publications including Apple News, Yahoo Finance, MSN Money, Her Campus Media and The Click.
