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Net worth represents the total value of an individual’s or entity’s assets minus their total liabilities. It serves as a crucial indicator of financial health and is calculated by summing all owned items that have monetary value, such as real estate, investments, cash, and intellectual property, and then subtracting all outstanding debts, including mortgages, loans, and credit card balances. This calculation provides a snapshot of an individual’s financial standing at a specific point in time, …