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The concept of net worth represents the total value of an individual’s or entity’s assets minus their total liabilities. It serves as a crucial indicator of financial health, providing a snapshot of what an individual truly owns after all debts are accounted for. Assets can include a wide range of possessions, such as real estate, investments, cash, and intellectual property, while liabilities typically encompass mortgages, loans, and other outstanding debts. For instance, a person might …