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Net worth represents the total value of an individual’s or entity’s assets minus their liabilities. It provides a snapshot of financial health at a given moment, indicating what a person owns after all debts are paid. This calculation encompasses various forms of wealth, including real estate, investments, cash, and other valuable possessions. Conversely, liabilities include mortgages, loans, credit card debt, and any other financial obligations owed to others. For instance, if an individual possesses assets …