An engagement ring is a memorable gift, as it signifies one of the most important events of one’s life. The dictum goes, diamonds are a girl’s best friend. So, most of the engagement rings (if not all) include diamonds. That means one has to spend a significant amount before popping the question. While there are no hard-and-fast rules for this decision, many people believe in following the protocols.
How Much to Spend on an Engagement Ring?
There is no average/standard amount to spend on an engagement ring. You might be surprised to know that the common amount spent in this regard is a mere $1900. Do not be fussed over the average expense on an engagement ring, which stands at $5000 or above. The average amount is influenced by people who spend $25000 on a ring. However, most couples spend no more than $3000 on an engagement ring.
There is a popular belief that one should spend two months’ salary on buying your prospective fiancé’s ring. There is no obligation to that. In fact, this notion started from a 190s clever advertising campaign initiated by the diamond industry.
The advertisement manipulated the men’s insecurities. It propounded that a large diamond ring would prevent the other men from making a pass at one’s future fiancé. It supposedly offered the solution to the budget problem by suggesting spending a two-month salary on the engagement ring. In reality, it was a ruse to raise the spending bar for buying a diamond. This campaign actually increased the company’s revenue and the notion has continued till today.
So, this one-month, two-month rule is nothing but a clever scheme by marketers. There are other things you should consider when deciding the spending limit for an engagement ring.
Things to Consider
It is tempting to spend a fortune on an engagement ring since it is for the love of your life. But do not forget that soon you will be hosting a dinner for hundreds of people—not to mention buying another beautiful diamond ring for the wedding. Also, you might still have debt or student loans to pay after the engagement. Observing a little financial responsibility now will save you from the trouble later.
Before you decide the amount to spend on your fiance-to-be’s ring, remember that the ring’s size or cost does not signify your love or care. Here are a few things to consider while deciding the amount to spend on the engagement ring:
Your Fiancé’s Preferences
You should know about the likes and dislikes of your significant other. An engagement ring depicts your commitment and care. It fixates on the person you are going to spend your life with and thus involves the choice of that person. So, understand your fiancé-to-be’s expectations and choice. It is better to have an open discussion on the ring and finances. However, if you want to keep it a total surprise, there are other ways to know about her/his choice.
Search her/his social media accounts, especially Pinterest and Instagram. You might find important information regarding the desired shape and setting of the ring. See what color she prefers in the jewelry setting and if there are some family heirlooms you should know about. Observe the ring she wears every day. Contact her friends and ask about her preference for a diamond ring. That will give you a start on what kind of ring you want and how much it will cost.
Be Mindful of Your Financial Situation
Now that you have got an idea of what you (or your fiancé-to-be) wants in an engagement ring, it is time to check your bank account. If you have ample savings, choosing the ring you like is not going to be an issue. However, you should also factor in the upcoming expenses, as purchasing a ring is a significant expenditure that can empty or at least lighten up your account.
You have to consider your affordability thoroughly. Calculate your monthly expenses, taxes, health expenses, insurance, or any other expense before you think about spending your income/savings. If you plan to take a loan, calculate the amount of time you would need to pay it off. Consider the monthly expenditures and deduct a certain amount for contingencies as well while ascertaining the monthly installment for the loan.
Set a budget and then stick to it. Deciding on the budget as a couple can help you stick to it and remove any uncertainty.