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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 real estate, investments, cash, and other valuable possessions, while liabilities encompass mortgages, loans, and credit card debt. For instance, a person owning a house worth $500,000 and having $100,000 in investments, but …