Kiyosaki vs Dave Ramsey: Who's Right About Money?
Comparing the financial philosophies of Robert Kiyosaki (Rich Dad) and Dave Ramsey. Where they agree, disagree, and who to follow.
Key Takeaways
- 1Ramsey says all debt is bad; Kiyosaki says debt for assets is good
- 2Ramsey recommends mutual funds; Kiyosaki recommends real estate & gold
- 3Both agree on financial education being important
- 4Ramsey is better for getting out of debt and beginners
- 5Kiyosaki is better for building wealth once basics are handled
- 6Ramsey targets middle class stability; Kiyosaki targets wealth building
- 7Both have helped millions—different approaches for different situations
Two Different Approaches to Money
Robert Kiyosaki and Dave Ramsey are two of the most influential financial voices—but they often disagree.
| Topic | Dave Ramsey | Robert Kiyosaki |
|---|---|---|
| Philosophy | Live debt-free | Use debt strategically |
| Audience | People in debt | Aspiring investors |
| Goal | Financial security | Financial freedom |
| Investing | Mutual funds | Real estate, gold, businesses |
| Risk tolerance | Conservative | Aggressive |
| Background | Went bankrupt, rebuilt | Military, entrepreneur |
On Debt: The Biggest Disagreement
This is where Ramsey and Kiyosaki fundamentally disagree.
| Aspect | Ramsey Says | Kiyosaki Says |
|---|---|---|
| All debt | Bad—avoid it | Depends on use |
| Mortgage | Pay off ASAP | Use for cash-flowing property |
| Credit cards | Cut them up | Use responsibly for rewards |
| Business debt | Avoid if possible | Essential for growth |
| Student loans | Bad—avoid | Bad—agree here |
The Core Difference
Ramsey: "The borrower is slave to the lender." Kiyosaki: "Good debt buys assets that put money in your pocket." Both are right in different contexts.
On Investing
Their investment advice diverges significantly.
- **Ramsey on stocks**: Invest in growth mutual funds through 401(k) and Roth IRA
- **Kiyosaki on stocks**: "Savers are losers"—prefers real assets
- **Ramsey on gold**: Generally doesn't recommend
- **Kiyosaki on gold**: Strong advocate—inflation hedge
- **Ramsey on active investing**: Against it—buy and hold
- **Kiyosaki on active investing**: Advocates financial education and active management
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On Real Estate
Real estate is another major point of disagreement.
| Topic | Ramsey | Kiyosaki |
|---|---|---|
| Primary home | Good investment | Liability (doesn't produce income) |
| Rental property | Only if paid cash | Use leverage for more properties |
| Mortgage | Pay off in 15 years | Interest-only, use equity |
| Real estate investing | Passive, occasional | Core wealth-building strategy |
The Kiyosaki View
Kiyosaki famously said your home is a liability, not an asset, because it takes money from your pocket (mortgage, taxes, maintenance) rather than putting money in.
Who Is Right?
Both approaches have merit depending on your situation.
- **Follow Ramsey if**: You're in debt, need structure, want guaranteed safety
- **Follow Kiyosaki if**: You're debt-free, want to build wealth, can handle risk
- **Start with Ramsey**: Get out of debt, build emergency fund
- **Transition to Kiyosaki**: Once basics are handled, consider leveraged investing
- **Neither is 100% right**: Take what works from both
The Synthesis
Many financial advisors suggest: Ramsey for getting out of debt and building a foundation. Kiyosaki for building wealth once that foundation exists.
The Gold Question
On gold, they disagree completely. Ramsey rarely recommends it. Kiyosaki strongly advocates for gold as protection against inflation and dollar weakness. For retirement portfolios, adding some gold exposure applies Kiyosaki's diversification principles.
Building Wealth with Diversification
Kiyosaki advocates for real assets including gold. A Gold IRA combines tax-advantaged retirement saving with precious metals diversification.
- Kiyosaki recommends gold for inflation protection
- Ramsey focuses on paper assets (mutual funds)
- Consider your risk tolerance and goals
Frequently Asked Questions
1What is the main difference between Kiyosaki and Ramsey?
Ramsey believes all debt is bad and advocates paying cash for everything. Kiyosaki believes debt used to buy cash-flowing assets (like rental property) is good debt. This fundamental difference affects all their other advice.
2Who should I listen to—Kiyosaki or Ramsey?
If you're in debt and need a structured plan, start with Ramsey. If you're debt-free and want to build wealth aggressively, consider Kiyosaki's approach. Many people follow Ramsey first, then transition to Kiyosaki-style investing.
3What does Kiyosaki say about Dave Ramsey?
Kiyosaki has said Ramsey's advice is good for "poor people" but doesn't build wealth. He respects Ramsey's debt elimination but disagrees with his "all debt is bad" philosophy and mutual fund recommendations.
4What does Dave Ramsey say about gold?
Ramsey generally doesn't recommend gold as an investment. He prefers growth stock mutual funds and real estate (paid for with cash). Kiyosaki, in contrast, strongly advocates for gold and silver.
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