How Does Robert Kiyosaki - Good Debt vs Bad Debt Work?

Robert Kiyosaki says good debt helps you make more money, while bad debt takes money away from you, like a sneaky cookie thief!

Imagine you have two piggy banks: one is for good debt, and the other is for bad debt.

Good debt is like borrowing money from a friendly neighbor to buy a toy that makes you money later. For example, if you borrow $10 from your neighbor to start a lemonade stand, and then you make $20 selling lemonades, you’ve got more money than before! That’s good debt because it helps you grow.

Bad debt is like borrowing money from a sneaky cookie thief who takes your cookies (your money) without giving you anything in return. For example, if you borrow $10 to buy candy today but don’t have any money left for lemonade tomorrow, that’s bad debt because it costs you more than it helps.

So, the trick is to use good debt to grow your piggy bank and avoid bad debt, which steals from it!