Robert Kiyosaki Reveals the Simplest Path to Wealth

Robert Kiyosaki, investor and author of Rich Dad Poor Dad, has revealed the easiest way to become wealthy by utilising debt strategically. While debt is often seen as a financial burden, Kiyosaki contends that specific strategies can generate profit through debt as a financial instrument for productive activities. This approach clarifies the difference between good and bad debt, he says.

‘The new rules of money require debt if you wish to become rich. The condition is that it must be good debt,’ Kiyosaki stated, cited on Wednesday, 27 May 2026.

According to Kiyosaki, bad debt involves loans for liabilities such as car payments and holidays, which are non-essential and lose value over time. Good debt, however, is used to purchase assets that generate monthly cash flow, such as investment properties or venture capital.

‘This is good debt. It requires high financial intelligence to use correctly, but when done right, you can generate money faster,’ he added.

Example of Good Debt Strategy

The purchase price of a property asset is US$100,000. The loan covers US$80,000 at 5% interest, with the remaining US$20,000 paid in cash from personal funds.

Using a simple mortgage calculator, the annual cost of the loan is approximately US$8,500. If the property generates US$11,000 in annual income, the net income after expenses is US$2,500 (US$11,000 - US$8,500). This yields a 12.5% return on the US$20,000 personal investment.

Kiyosaki notes that this 12.5% return exceeds average returns from conventional investment methods.