How Much Should I Really Spend for an Engagement Ring?If you are already shopping for an engagement ring, you've no doubt encountered the old "guideline" that recommends you invest the equivalent of two months' salary on the cost of the ring. And it's probably no surprise to you that the diamond and jewelry industry came up with that recommendation. Forget about that amount, because people who benefit financially from a sale, and don't have a clue about your budget, have no business dictating the amount of your purchase.
A better question is: How much can you spend on an engagement ring without going into debt or wrecking your budget?
- Can you pay for the ring with cash? Will spending the cash put you in a bind with ongoing and known future expenses?
- If you finance the ring, will your monthly payments be affordable? Is the amount of interest you'll be charged for the loan reasonable, or will it escalate the true price of the ring so much that it will take forever to pay it off?
How much do you want to spend on an engagement ring?
- Would purchasing a cheaper engagement ring allow you and your fiance to buy a home or other things you need, or take a trip that you couldn't otherwise afford?
- Does your fiance want an engagement ring? Some women prefer to wear a wedding band, and if she likes sparkle, a band encircled with diamonds or other gemstones could be an affordable alternative to an engagement ring.