You may have heard the two or three months’ salary rules. The truth is, these rules are outdated. Two or three months’ salary would buy a beautiful ring but for many people, spending this much is just too much. It’s easy to spend too much on a ring for the love of your life but consider this: do you want to start the marriage off with the financial stress that could come from spending more than you can afford on the engagement ring?
How much should you spend on an engagement ring?
There isn’t one answer to this question. You should spend what you can afford. What you spend is up to you. Avoid letting others tell you how much you should spend. The amount you spend on an engagement ring should be entirely personal.
Talk about expectations ahead of time
Have a conversation about your partner’s expectations. If expectations are higher or lower than you expected, talk about it. Now is the time. An engagement ring is a significant purchase that could affect you and your partner’s financial well-being going forward.
What does the average engagement ring cost?
According to The Knot’s Real Wedding Study, the 2017 average engagement ring cost $6,351. Don’t get discouraged by the averages. How much you spend on an engagement ring is highly personal. The only rule you should follow: don’t go into significant debt when purchasing an engagement ring.
The two/three month’s salary rules
This two/three month’s salary rule was created by the diamond industry to increase sales at the beginning of the second world war. These rules are outdated and unrealistic for most people these days. Save yourself a headache that comes with debt and overspending and avoid these archaic guidelines.
How much you spend on an engagement ring is entirely personal. Here are some factors to consider when determining how much to spend:
- Your current financial situation. Consider your current budget as well as upcoming expenses. After reviewing these, you can make a plan to finance the engagement ring.
- Your partner’s wants. You probably have enough of an idea of what your partner would like in a ring by now. If you don’t, go out window shopping together to figure it out or ask your partner’s friends and family for ring advice.
Now that you understand how personal purchasing an engagement ring is. There is no single amount you’re required to spend and rings come in all price ranges. If you’re getting ready to commit with an engagement ring, consider your financial situation before you spend more than you can comfortably repay.
Need help financing the ring? Consider a personal loan to provide the funds you need for your partner’s dream ring.