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Net worth represents the total value of an individual’s assets minus their liabilities. It provides a comprehensive snapshot of a person’s financial health at a given moment, reflecting what they own versus 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. Calculating this figure is a fundamental practice in personal finance, offering insight into accumulated wealth over time. …