For example, if an individual possesses a house worth ₹50 lakh, has ₹10 lakh in  savings, and owes ₹5 lakh in loans, their net wealth would amount to ₹55 lakh.

How to Understand :  

Wealth serves as a comprehensive measure of financial strength, encompassing a  broader perspective than merely the cash reserves held in bank accounts.

Importance :

It indicates long - term financial security and stability, essential for future planning.

Wealth facilitates the achievement of significant future goals, such as acquiring real  estate or ensuring a comfortable retirement.

It provides a protective buffer against unforeseen emergencies, enhancing financial  resilience.

The accumulation of wealth is vital for fostering generational financial stability, ensuring  a secure economic foundation for future descendants.