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The concept of net worth represents the total value of an individual’s assets less their total liabilities. It provides a snapshot of an entity’s financial health, illustrating what an individual owns compared to what they owe. Assets can include real estate, investments, cash, and other valuable possessions, while liabilities encompass debts such as mortgages, loans, and credit card balances. Calculating net worth is a fundamental practice in personal finance, offering insight into an individual’s economic …