Couple with $3m home feel stretched by mortgage and school fees

A couple earning $180,000 a year feel financially stretched despite owning a home worth about $3 million and having $100,000 in savings. Money educator Vanessa Stoykov says this reflects the difference between wealth tied up in a home and cash available for bills, and suggests assessing whether the strain is temporary or the commitments are unaffordable.

The couple owe $700,000 on their mortgage and pay about $50,000 a year for their sons’ private school fees, even after scholarships. With three years of school remaining, fees could total around $150,000 if they do not rise. Stoykov advises mapping income after tax against essential spending, deciding how much of the offset account to preserve as a buffer, and reconsidering whether the school fees still fit their priorities; once they end, the freed-up money could rebuild savings or reduce the mortgage.