How Much Should You Spend on an Engagement Ring?

Choosing the right engagement ring is a big decision, and so is figuring out how much to spend on it. The reality is that there’s no one-size-fits-all answer. The key is to find a balance between your dream ring and your budget, and that’s where options like engagement ring financing can come in handy.

Whether you’re aiming for a classic solitaire or a custom design, we’ll guide you through making a smart financial decision that works for both your heart and your wallet.

The Traditional Rule of Thumb – Three Month’s Salary

The traditional rule of thumb is to spend three month’s salary on an engagement ring. For example, if you earn around $5,000 a month, you’d budget about $15,000 for the ring.

However, this rule may not work for everyone these days. You both may have other goals you prefer to save for, such as buying your first home or paying off debt.

This rule was created when the cost of living compared to wages differed. With the increased cost of living, this rule may not be the best idea for everyone.

If you still want to follow this rule, you might consider financing a part of the ring’s cost to make up for gaps in your savings if you’re willing to manage the loan.

Factors to Determine Your Engagement Ring Budget

Here are four things to consider when figuring out how much to spend on the engagement ring:

1. Your Income and Expenses

Look over your income and expenses first to make sure purchasing a ring would not cause serious financial strain and see how much ring you could comfortably afford.

Ongoing and fixed expenses, like rent or mortgage, loans, and other monthly bills, will give you a good idea of your budget.

However, consider your discretionary spending, like dining out or subscriptions you don’t use anymore. You may have more flexibility here. For example, you might be ok with cutting back on that spending for a while to get a pricier ring.

2. Your Timeline

Your timeline for proposing dramatically impacts your ring budget. If you plan to propose soon, you’ll want to save more aggressively or seek financing to purchase the ring. Otherwise, you might want to consider a lower-priced ring.

If you plan to propose farther out, you may have more time to save, allowing you to save for a pricier ring and reduce the financing amount. You could also seek a lower-priced ring and save less monthly, making it easier to fit saving for the ring into your budget.

3. Your Partner’s Preferences

Price alone isn’t as important as finding a ring that suits your partner’s preferences.

For example, some people may care more about diamond quality or size. Others may appreciate a simpler, more understated ring or even want alternative stones.

None of these are inherently good or bad. They’re all personal preferences. The key is knowing your partner’s desires and doing your best to find a ring that meets them. You could discuss this with them beforehand if you’re at a place in your relationship where you’re both confident you’re ready to do life together.

However, investing time and effort in a romantic and memorable proposal may reduce the importance of getting the exact ring details correct.

4. Your Future Goals

Your ring budget may impact the funds you have for future goals. That includes related goals, like your proposal, wedding, and honeymoon. The more you spend on the ring, the less you may have for each of these.

However, think about longer-term goals as well. Do you plan to buy a house? What about having children? Will you have one partner earn the majority of the income or both?

Spending more on a ring, whether through cash or financing, may slow your progress toward these goals. So, discuss all of these with your partner to clarify how much you could spend on the ring.

Set a Good Engagement Ring Budget

The traditional “three-month salary” rule may still work for some, but more couples may find that it doesn’t fit their situation.

Consider your income, expenses, and timeline to get some estimated numbers down. Then, talk with your partner about their preferences and your future goals to get a better idea of what kinds of rings to look for.

It’s possible to find a ring your partner loves within your budget with a bit of work. That work will all be worth it when you get an ecstatic “yes” on proposal day.

SPONSORED CONTENT

Contact Information:
Name: Sonakshi Murze
Email: [email protected]
Job Title: Manager