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Net worth represents the total value of an individual’s or entity’s assets minus their liabilities. It provides a comprehensive snapshot of financial health, indicating what would remain if all assets were converted to cash and all debts were paid off. Assets can include tangible items like real estate, vehicles, and personal property, as well as intangible holdings such as investments, intellectual property, and cash reserves. Conversely, liabilities encompass all outstanding debts, including mortgages, loans, and …