The book 'Rich Dad Poor Dad' occupied airport shelves and financial reading lists for nearly three decades, being a work that supposedly revealed the secret to getting rich. Initially published by Robert Kiyosaki in 1997, the book is reported to have sold almost 44 million copies worldwide, making the author one of the most recognizable figures in personal finance.
The man who wrote the book about wealth has now stated that he has debt exceeding $1.2 billion (which amounts to approximately 21.8 billion rands).
The main idea of the book is simple and easily reproducible. Kiyosaki presents his financial education as a struggle between two father figures: his own highly educated but financially cautious biological father, whom he calls 'Poor Dad,' and a wealthy, entrepreneurial family friend, whom he names 'Rich Dad.'
The lesson laid out in the book was that traditional advice such as diligent study, securing a stable job, and saving salary keeps people poor, whereas an entrepreneurial mindset and the purchase of 'assets' make people rich.
This concept was coherent and proved successful. The book gained wide exposure on American daytime television, and Kiyosaki became a regular participant in seminars, special PBS programs, and ultimately, the extensive 'Rich Dad' educational business built around this same core message.
However, critics constantly pointed to the 'Rich Dad' himself. Various publications noted that no independent records had ever been presented confirming the identity or existence of this mentor, and Kiyosaki's own account of him changed over the years. Forbes reported that it could not find documentary evidence of Kiyosaki's wealth before the book's success in 1997, fueling long-standing suspicions that the figure of 'Rich Dad' might be more of a parable than a real person.
The problems are not limited to the origin story. Kiyosaki's company, Rich Global LLC, filed for corporate bankruptcy in 2012 after incurring a court fine of about $24 million from The Learning Annex, the organization that initially organized his early appearances.
Participants in 'Rich Dad' seminars also filed lawsuits, and Kiyosaki faced criticism from investigative journalists for many years.
Then, in late 2023 and early 2024, Kiyosaki made a shocking public admission: he had personal debt exceeding $1.2 billion. Instead of viewing this as a crisis, Kiyosaki presented it as a strategy, telling followers in an Instagram video that 'if I go bankrupt, the bank will go bankrupt,' and explaining that the debt was related to investments in gold, silver, and other assets, not obligations like his cars, which he said were fully paid off.
Kiyosaki's supporters argued that using leverage to acquire growing assets is a legal, albeit high-risk, investment philosophy, and that the company's bankruptcy in 2012 is separate from his personal finances. However, his critics countered that a man who built his fortune by urging ordinary readers to avoid financial collapse is now in a state of debt that most of those readers could never handle.
In any case, the book that promised to transform 'poor' thinking into 'rich' thinking has itself become a kind of ironic example. It is proof that the story constantly sold in the media does not always match the balance sheet behind it.