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An individual’s total financial worth is commonly referred to as their net worth. This figure is meticulously calculated by aggregating all assets, which include cash, investments, real estate, and other valuable possessions, and then subtracting all liabilities, such as debts, loans, and mortgages. For instance, if an individual owns a house valued at $500,000, has $100,000 in savings, and $200,000 in investments, but also carries a mortgage of $300,000 and other debts totaling $50,000, their …