Are you wondering how much you should spend on an engagement ring? It is one of the biggest purchases of your life and can be quite complicated, so we are here to help! Here are some important factors to consider when planning how much to spend on an engagement ring:
What does your future fiancé expect from you? Are they the type that want a JLo sized ring? Or will they be fine with a a ring pop on their finger after you pop the question? Most likely, your future fiancé will be somewhere in the middle.
If you have no idea what her expectations are try to understand by speaking to her parents, asking her friends, and checking out her Pinterest. If you are not keeping the proposal a secret, you can always go to a jewelry store with her to find something that she likes.
Forget The “Two Month’s Salary Rule”
You can blame the two month’s rule on De Beers. The huge diamond company convinced the world that men need to spend 2 month’s salary on a diamond. De Beers also happens to be the company that made it standard to propose with a diamond.
So if you are asking yourself “how many months salary for engagement ring?” The answer is: you should not purchase an engagement ring based solely on your income. There are many other factors that go into how much you should spend on an engagement ring, your income just being one of them.
Don’t Worry About the National Average
The average engagement ring in the United States costs $6,575.
See below for a comprehensive list of the average cost of an engagement ring by state in the United States:
You shouldn’t worry about the national average because there are so many other factors that go into buying an engagement ring.
Determine Your Financial Situation
Here is a starting list that will help you determine your financial ability to purchase an engagement ring:
- Current income
- Potential income: Are you at a job with a lot of growth potential? Don’t be too optimistic because you never know what is going to happen, but factor in your future earnings and savings if you expect to be making more money. Make sure this timeline aligns with oyur proposal goals.
- Expenses: How much do you spend on food, bills, and debts like loans or car payments.
- Savings: How much extra cash do you have in savings? How much can you save per month if you cut down on extraneous things? Does that timing and saving align with your engagement goals
Financing or Borrowing Money An Engagement Ring
If you are curious about engagement ring financing, here is some guidance.
For something like a diamond, it’s best to pay cash. But, if you’re short on cash and need to pop the question, you can consider financing the ring Here are the two best ways to finance an engagement ring:
- Jewelry store financing: Jewelry stores offer financing, which can be okay and even great if you get 0% financing. But watch out for terms such missing a payment or what happens if you do not pay off the ring before the promotional APR expires.
- Use a credit card: Credit cards are the most convenient way to make large purchases and pay them off over time, but they can be very expensive. They have high interest rates and let borrowers make small minimum payments that increases the length of time it takes you to pay off the debt while increases the interest you’ll pay. Look for cards with 0% introductory rates if you use a credit card to make a large purchase (and enjoy the points!)
How To Save Money On An Engagement Ring
Our favorite recommendation for saving money on an engagement ring is to just shop online.
You can save as much as 50% by buying engagement rings online from reputable online jewelers. If you can find a respected online jewelry store, such as James Allen, you can actually save significantly.
Remember You Have To Buy Wedding Rings
The average cost of the bride’s wedding ring is $1,125. For grooms, the average price is $500.