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Net worth represents the total value of an individual’s or entity’s assets minus their liabilities. This financial metric provides a comprehensive snapshot of economic health, indicating what an individual would possess if all their assets were liquidated and all debts were paid. Assets can include real estate, investments, cash, and other valuable possessions, while liabilities encompass mortgages, loans, and credit card debt. Understanding this concept is fundamental for assessing financial standing and projecting future economic …