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Net worth represents the total value of an individual’s or entity’s assets minus their liabilities. It provides a comprehensive snapshot of financial health, indicating accumulated wealth rather than just income. Assets can include tangible items like real estate, vehicles, and collectibles, as well as financial holdings such as stocks, bonds, and cash. Conversely, liabilities encompass debts like mortgages, loans, and credit card balances, which reduce overall wealth. A higher net worth signifies greater financial stability …