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Net worth represents the total value of an individual’s assets minus their liabilities. This financial metric provides a snapshot of an entity’s economic health at a specific point in time, reflecting accumulated wealth from various sources such as investments, real estate, and intellectual property. For instance, if someone owns a house valued at $500,000 and has $100,000 in savings, but carries a mortgage of $300,000 and $20,000 in credit card debt, their net worth would …