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Net worth represents the total value of an individual’s assets minus their liabilities at a specific point in time. It provides a comprehensive snapshot of a person’s financial health, indicating their accumulated wealth. Assets can include real estate, investments, cash, and other valuable possessions, while liabilities encompass debts such as mortgages, loans, and credit card balances. This calculation is a fundamental metric in personal finance, offering insight into an individual’s financial standing and solvency. For …