We really don’t believe there are any set rules when it comes to budgeting for an engagement ring. Your budget is as unique as you are. But, taking your commitment to the next level shouldn’t be stressful. That’s why we’ve compiled these tips to help you set your budget.
- Determine Your Budget
Your engagement ring plan of action must start with a budget. It’s the financially responsible thing to do and it can help keep your expectations realistic as you browse the top engagement rings selection of your chosen jeweller. If you think you will be taking out a payment plan, determine the type of monthly payments you can afford for 6 – 12 months and include a down payment.
Once you’ve set your budget, you need to prioritise. Do you want the highest quality diamond you can afford? Will you choose a simple metal band or one that’s embellished with bling? What type of metal will you prefer? Once you’ve set some priorities, a jeweller can help you explore your options within your price range.
Here are a few smart compromises to consider:
- Quality vs. quantity – Put more of your budget towards the diamond over the mounting. A smaller diamond with a higher quality is a better compromise.
- Brand – If your budget is tight, opt for a non-designer ring.
- Halo setting – A halo setting surrounds the centre stone of a lighter weight with a number of smaller diamonds for a vintage look, making the centre stone look bigger.
- Buy a diamond just under a carat – Choosing a stone that’s just under the one carat or half carat marks is a little easier on the budget.
- Customised – A custom-made diamond isn’t necessarily more expensive than a ready-made option. You can collaborate with the jeweller to create something entirely unique and within your budget.
These kinds of compromises can help you make the most of your pre-set budget. You can always decide to upgrade the engagement ring later on.
- Spend What You’re Comfortable Spending
This is probably the most important tip we can give you. That two or three-month salary rule you’ve heard about is based on gross income, and not what you actually bring home each month. It doesn’t take into account your current financial standing, outstanding debt and all that. The rule was merely a marketing ploy that was invented by De Beers in the 1940s and proves rather unrealistic these days.
Think about it for a moment. Three month’s salary is 25% – an entire quarter – of your earnings. On top of paying for a wedding and a honeymoon in the near future, do you really want to be paying off the engagement ring as well?
According to studies, the average cost of an engagement ring is around $6,000. But, average costs and salary so-called rules aside, it’s just as vital to keep in mind that many spend more and others spend less.
There’s one important rule you need to remember: set an engagement ring budget that you are comfortable with. A reputable jeweller can help you create or find the perfect ring and payment options to help stretch your budget.