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When you subtract the column of liabilities from the column of assets, the resulting figure is your net worth. If your assets are greater than your liabilities, you have a positive net worth, indicating that you own more than you owe. Conversely, if your liabilities outweigh your assets, you have a negative net worth, which signifies that you are in debt. The result of this calculationyour net worthis, in essence, the value that belongs to you outright. It represents the theoretical amount of value that would remain for you if you were to liquidate all of your assets and pay off all of your debts.
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