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The concept of net worth quantifies an individual’s financial health, representing the total value of their assets minus their liabilities. Assets encompass all possessions of value, such as real estate, investments, cash, and other tangible or intangible holdings, while liabilities include debts like mortgages, loans, and credit card balances. A positive net worth indicates that assets exceed debts, reflecting a sound financial position. For instance, a homeowner might calculate their net worth by subtracting their …