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Net wealth refers to the difference between your total assets (what you own) and total liabilities (what you owe). Knowing your net wealth gives you a clear snapshot of your overall financial position. This allows you to evaluate your level of financial security, identify areas of strength and weakness, and make adjustments as needed. For example, if your net wealth calculation reveals that you have high levels of outstanding debt compared to your assets, that might signal the need to focus more
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