Debt can make you poor or rich… it all comes down to what you’re borrowing for. Good debt buys assets that put money in your pocket, while bad debt just drains it. This is the fundamental difference in how the wealthy build and how the average person struggles.
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Meaning
The quote means that debt is a neutral tool; its outcome—wealth or poverty—is determined entirely by the purpose and strategy behind its use.
Explanation
Look, I’ve seen this play out so many times. The average person uses debt to buy liabilities—a bigger car, a nicer TV, vacations they put on a credit card. This is what Kiyosaki calls bad debt. It sucks money *out* of your pocket every single month with no return.
But the rich? They use debt as leverage. They’ll borrow money to acquire an income-producing asset—like a rental property, a business, or stocks. That asset then generates cash flow that pays for the debt itself and puts extra money in their pocket. The debt literally works for them while they sleep. It’s the difference between being a slave to the lender and making the lender your slave.
Quote Summary
| Context | Attributes |
|---|---|
| Original Language | English (3668) |
| Category | Wealth (107) |
| Topics | leverage (2), money (27), risk (54) |
| Literary Style | informative (41), pithy (25) |
| Emotion / Mood | empowering (174), realistic (354) |
| Overall Quote Score | 73 (94) |
Origin & Factcheck
This concept is central to Robert Kiyosaki’s 2017 book, “Why the Rich Are Getting Richer,” which builds on the principles from his earlier mega-hit, “Rich Dad Poor Dad.” While the core idea is his, people often mistakenly attribute similar sayings about “good debt vs. bad debt” to other financial gurus like Dave Ramsey, whose philosophy is actually to avoid almost all debt entirely.
Attribution Summary
| Context | Attributes |
|---|---|
| Author | Robert T Kiyosaki (98) |
| Source Type | Book (4032) |
| Source/Book Name | Why the Rich Are Getting Richer (52) |
| Origin Timeperiod | 21st Century (1892) |
| Original Language | English (3668) |
| Authenticity | Verified (4032) |
Author Bio
Born in Hilo, Hawaii, Robert T. Kiyosaki graduated from the United States Merchant Marine Academy and served as a Marine Corps helicopter gunship pilot in Vietnam. After stints at Xerox and entrepreneurial ventures, he turned to financial education, co-authoring Rich Dad Poor Dad in 1997 and launching the Rich Dad brand. He invests in real estate and commodities and hosts the Rich Dad Radio Show. The Robert T. Kiyosaki book list spans personal finance classics like Cashflow Quadrant and Rich Dad’s Guide to Investing, along with educational games and seminars.
| Official Website | Facebook | X| Instagram | YouTube
Where is this quotation located?
| Quotation | Debt can make you poor or rich depending on how you use it |
| Book Details | Publication Year/Date: 2017, ISBN/Unique Identifier: 9781612680811, Last edition: 1st Edition, Number of pages: 256 |
| Where is it? | Chapter 5, Good Debt and Bad Debt, page 72 |