Robert Kiyosaki Proudly Admits, 'I Am $1.2 Billion in Debt' While Dave Ramsey Warns, 'Debt Always Equals Risk'– Which Guru Should You Trust?

Two names often come up in conversation regarding personal finance: Robert Kiyosaki and Dave Ramsey. These two financial experts are respected in their field and friends. But when it comes to debt, they couldn't be more different. Their opposing views on this topic have sparked plenty of discussions, which gets people thinking about their financial decisions.

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Robert Kiyosaki: The Debt Advocate

Robert Kiyosaki, the author of the hugely popular Rich Dad Poor Dad, has a bold take on debt. He doesn't see it as something to avoid. He thinks it's a tool you can use to build wealth. In March 2024, Kiyosaki posted on X (formerly Twitter), "WHO IS RIGHT? My friend Dave Ramsey says, ‘Live debt-free.' I say, ‘I use debt to invest. I am $1.2 billion in debt.'" This isn't just talk for Kiyosaki; he's walking the walk.

Kiyosaki's philosophy is that when used wisely, debt can be leveraged to create wealth and gain tax advantages. He believes in using other people's money to invest and grow your financial portfolio. But he's also upfront that his approach isn't for everyone. "Most people can't handle debt," he admits, which means this strategy is really for those with a good handle on financial management and aren't afraid of taking risks.

Dave Ramsey: The Debt-Free Advocate

Then there's Dave Ramsey, who's all about living debt-free. You know Ramsey’s work if you've heard of the Debt Snowball Plan. He's a big believer in financial peace of mind, which means steering clear of debt altogether. Ramsey advises people to live within their means, avoid debt, and focus on using their income to build wealth.

Despite their differences, Ramsey and Kiyosaki have mutual respect. Ramsey has said on X, "Robert and I are friends. I highly recommend Rich Dad Poor Dad book. We disagree on debt." While he appreciates Kiyosaki's insights, Ramsey sticks to his belief that debt is too risky. "Debt always equals risk," he often says, clarifying that he thinks avoiding debt is the safest way to ensure financial stability.

Debt: Tool or Trap?

So, here's where their debate heats up: Is debt a tool or a trap? Kiyosaki sees debt as a strategic way to build wealth. For him, it's about using what you have – and what you can borrow – to invest in your future. Ramsey, however, sees debt as something that can easily spiral out of control, leading to financial trouble. He believes the best way to stay secure is to avoid debt entirely.

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Which Approach is Right for You?

The truth is, there's no one-size-fits-all answer here. It really depends on your financial goals, how comfortable you are with risk, and how well you understand managing money. If you're confident in your financial skills and willing to take some risks, Kiyosaki's approach might make sense to you. But if you prefer to play it safe and avoid the stress that comes with debt, Ramsey's debt-free philosophy could be the better choice.

Kiyosaki and Ramsey both offer valuable perspectives. The key is to find what works for you and your financial situation. Whether you decide to use debt as a way to grow your wealth or choose to avoid it for the sake of security, the most important thing is making decisions that align with your values and goals. The debate between these two financial giants isn't going anywhere, and that's good – it keeps the conversation going and helps everyone find the approach that's right for them.