Many couples use their salary as a guideline for how much to spend on an engagement ring. However, this is not a very sound method of budgeting because your salary should only be used to determine how much you can comfortably spend without going into debt.
It’s a good idea to discuss your partner’s ring expectations with them ahead of time. This will help you find a ring that they’ll love for years to come.
How Much Can You Afford?
A big purchase like a ring should be considered carefully, especially when it will have an impact on your long-term financial goals. A good place to start is by looking at how much you have already saved up. If you haven’t started saving yet, consider how much you can set aside from each paycheck and how long it will take to reach your goal. This way, you can avoid going into debt for a ring or having to compromise on your other goals in the process.
If you do end up needing to borrow, be careful not to spend more than you can comfortably afford to pay back within a year. Otherwise, you could be left struggling to manage other expenses, which can lead to stress in the long-run.
You’ll also want to shop around, which is not only a romantic gesture, but a smart one financially. You may be able to find a similar or even better ring for a lower price elsewhere. For example, many jewelry stores offer discounts in the months leading up to Valentine’s Day or Black Friday.
It’s also a great idea to check in with your fiancee, as she may have a particular style in mind or a favorite stone she wants. She may have been dreaming of a large diamond for years, while you might be more interested in an alternative gemstone like moissanite or cubic zirconia that still looks beautiful and is just as durable.
In the end, there is no right or wrong answer to how much you should spend on your ring. But, it’s important to make sure that whatever you choose is based on what you can afford and not some old-school rule crafted by a diamond company to drum up engagement ring sales in the 1930s.
After all, you’ll be wearing your ring for the rest of your life. It should be something you love and feel comfortable in, and that will help her feel the same way as well! And that’s worth a lot more than some silly ad campaign.
What Do You Want in a Ring?
If you’re going to spend a certain amount of money on a ring, you want to make sure the ring is something your partner will truly love. That means considering their personal style, as well as whether they already wear jewelry often, and if so, what kinds of styles. For example, if they have a lot of edgy, vintage-inspired jewelry, a ring with a bold, modern silhouette could be perfect. If they prefer a more minimalistic look, a simple solitaire might be better for them.
Another consideration is how your ring will be created. “Not only does this impact the look and durability of the ring, but it also plays into where the materials came from,” says Neal. “If they’re sourced in an ethical and sustainable way, it can add to the meaning of the ring.”
You should also consider what kind of lifestyle your partner has, and how that might affect their ring needs. If they are very active, for instance, a ring with a stone that will need to be cleaned more frequently may not work. And if they have allergies, a ring with a metal alloy might not be the best option.
Many couples also opt for stackable rings, which can be more fun than a single engagement ring and wedding band. This is especially popular for brides who want to incorporate the stones of their ancestors into their designs, as well as couples who wish to add a contemporary flair to traditional styles.
It’s also important to remember that a ring is not just a symbol of love; it can be a sign of respect, too. Taking the time to design a meaningful ring for your partner isn’t just a great way to show that you care; it’s an excellent way to communicate that you respect their feelings, regardless of how much you can or cannot afford.
If you aren’t sure what your partner wants, try asking them! They might even have a Pinterest board with ideas of what they’d like. This is a great way to find out their style without being too obvious, and it’s something you can show a jeweler to get them on your side.
Do You Have a Budget?
Before you even begin shopping for your engagement ring, it is important to take an objective look at your finances. This includes a full assessment of your individual income, expenses and savings potential. You will also want to consider your financial priorities, including any existing debt or future goals you and your significant other may have. Once you have a clear picture of your finances, you will be able to choose an appropriate budget for your engagement ring.
Many couples fall prey to outdated engagement ring budget rules, such as the traditional guideline that you should spend two months salary on an engagement ring. While this is a nice benchmark to use as a starting point, it’s important to remember that there is no single right answer when it comes to engagement ring costs.
The truth is, every couple is different. Some couples can easily afford a large diamond, while others may need to scale back on the carat size or opt for a more classic ring style. The bottom line is that you should always choose the ring that best fits your budget and your partner’s personal style.
Once you have a rough idea of what your budget is, you should start to look at rings online and in stores. It can help to narrow down your options by looking at the 4Cs first and focusing on those that are within your price range. For example, if you have your heart set on a particular ring style, you may want to focus on the cut and color of the diamond before worrying about the carat size or other details.
When choosing a ring, it is also important to think about the big picture and what will be most beneficial for your long-term happiness together as a couple. For example, it may be more practical to purchase a smaller ring now and save the difference in your budget for a down payment on a house or other life milestones.
Of course, nothing compares to the love you share with your partner and the thoughtfulness you put into designing a personalized ring. No matter what your budget is, it’s possible to find a beautiful ring that will show how much you care about your partner. Clarity’s gemologists are experts at working with every budget to find the perfect ring for your unique life together.
Do You Have a Ring in Mind?
Whether your significant other is open about their expectations for their engagement ring, or you’re trying to keep things a surprise, it’s important to strike a balance between your financial situation and your loved one’s dream ring. You may also want to consider other priorities, such as saving for a home or paying off student debt. You can find meaningful rings that don’t cost thousands of dollars. In fact, many couples today are choosing to skip the diamond ring entirely and choose something more affordable such as moissanite or a lab-grown diamond.
If your future spouse has been dreaming of their ideal ring since they were a kid, it’s a good idea to take their hints into account when selecting a ring. Similarly, if they’ve mentioned what kind of diamond or gemstone they prefer, you can use this to narrow down your options.
It’s important to remember that the engagement ring is a symbol of love, and not a measure of your value as a couple. There is some reason to, and some reason not to follow arbitrary rules such as the two or three months salary rule created by De Beers back in 1940 – but generally, yes, you can base the price of your ring on your salary.
If you are unable to afford an engagement ring outright, there are many ways to finance your purchase. If you have good credit, you can apply for a personal loan or take out a credit card with a low introductory rate. You should also consider your current debt load, which is often measured by calculating your debt-to-income ratio (DTI). Lenders typically want to see a DTI below 36%, so you may need to wait to purchase an engagement ring until after you’ve paid off some of your other debts. If you need help determining your DTI, check out this debt-to-income calculator.
