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Net worth represents the total value of an individual’s or entity’s assets minus their liabilities. It serves as a crucial indicator of financial health, providing a snapshot of what someone owns versus what they owe at a specific point in time. Assets can include tangible items like real estate, vehicles, and personal property, as well as financial holdings such as stocks, bonds, savings accounts, and retirement funds. Conversely, liabilities encompass debts like mortgages, car loans, …