The Glossary

Debt

Principal

The actual amount borrowed or invested.

In plain language

On a loan, principal is the balance before interest. On an investment, it's the money you contributed.

Why it matters

Paying interest feels like progress. Only principal shrinks the debt.

Put it to work

Own more. Owe less.

Every word here shows up in a real decision. Run your own number, or get the next one in The Letter.

Related words