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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 someone 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. Understanding this metric is crucial for financial planning and assessing economic standing, as it reflects accumulated wealth over time. For …