Renting can feel a bit like dating an ex. On one hand, you love the cute apartment vibes, maybe even that dream suburb with the perfect oat latte on every corner.

On the other hand? The emotional damage you suffer every time rent hits. Suddenly you're cutting back on brunch, cancelling subscriptions, and wondering if tap water counts as a meal.

Yep, this emotional rollercoaster has a name: ✨rental stress✨

According to the Australian Bureau of Statistics (ABS), rental stress kicks in when you're spending more than 30% of your gross income (that’s before-tax money) on rent.

And with rent and living costs rising faster than a Love Island couple saying “I’ve caught feelings…” It's no shocker that more renters are feeling the pinch.

But when you compare average incomes to median weekly rents across Australia’s capital cities, it becomes clear: you are so not alone.

A new report from Everybody's Home shows that even those earning $100,000 per year (well above the median salary) are now paying around 38 per cent of their income on rent. And about 70% of Australian tenants are paying more than that 30% threshold. That’s a lot of people stressing every time rent is due.

So how do you break up with rental stress?

There’s no one-size-fits-all rule, but if you’re trying to avoid getting rent-induced anxiety every month, ABS recommends keeping your rent under 30% of your gross income.

Here’s what that looks like:

• Gross weekly income: $1,000
  
  
• Max recommended rent: $1,000 x 0.3 = $300

Staying under that amount might mean rethinking your setup - like getting a housemate, or moving a little further out and dealing with a longer commute.

But the upside? Less financial stress, more breathing room, and maybe even money left over for things that spark joy (or at least cover your Spotify subscription).

The 50/30/20 Rule

If you don’t want to think about pre-tax dollars (mood), another way to approach this is via the 50/30/20 rule where you only look at your take home pay (i.e. the money that hits your bank account).

• 50% of your income on your need-to-haves
• 30% of your income on your want-to-haves
• 20% of your income goes straight into your savings, or to pay off any debts you have

Your need-to-haves are things like your rent, groceries, bills, insurances or health care. These are your non-negotiables in life, and they’re often the most expensive. That’s why up to half of your cash funnels straight into that pot.

Your want-to-haves? Say hello to facials, fancy dinners, new kicks and fresh cuts. These are all the things that are not absolutely essential, but they tend to keep us happy. Anything in this pot is completely optional.

Your savings is the money you put away for the future - aka a house deposit, a holiday or a car. However, before you start beefing up your savings, you might want to pay off any bad debts you have. Once you’re debt-free, you can start chipping away at your savings goal.

Flux has a budgeting tool that helps you categorise and review your spending, so you can see whether you’re on track or where you might need to make changes. You can thank us later. 😇