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Net worth represents the total value of an individual’s assets minus their liabilities. It provides a comprehensive snapshot of financial health, indicating what an entity owns versus what it owes. Assets typically include cash, investments, real estate, and other valuable possessions, while liabilities encompass debts such as loans, mortgages, and credit card balances. Calculating net worth is a fundamental practice in personal finance and business, offering crucial insights into financial standing and growth over time. …