The latest headlines about households earning $500,000 struggling with mortgages initially made me roll my eyes. My immediate reaction was typical - here we go again, another story about wealthy people complaining about their first-world problems. But diving deeper into the discussions, there’s actually more nuance to unpack here.

Looking at the raw numbers, a household income of $500,000 translates to roughly $304,000 after tax. Sounds fantastic, right? But then reality hits: $84,000 per year for childcare (with minimal or no subsidies at that income level), $153,000 in mortgage repayments for a $2 million loan, plus all the usual expenses of running a household. Suddenly that seemingly enormous income doesn’t look so enormous anymore.