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In this video, Hannah Hammond explains that despite Robert Kiyosaki carrying $1.2 billion in debt, his wealth continues to grow because he uses debt strategically to acquire income‑generating assets. She distinguishes between “good” debt—loans taken to purchase assets such as apartment complexes, rental properties, and commercial buildings that generate cash flow that pays down the debt and yields profit—and “bad” debt, which includes credit‑card balances, car loans, and primary‑residence mortgages that drain cash from the borrower. The contrast illustrates why wealthy individuals can leverage large liabilities to increase net worth while the poor and middle class see debt as a financial drain.

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