How to Budget for the Costs of an Engagement Ring

You’ve found the person you want to spend your life with, you are planning to propose, and now you need the perfect ring. That brings the question of how much to spend and how to afford such an extravagant gift.  Stay tuned for our best advice on budgeting for your diamond engagement ring!

An old rule says you should spend a minimum of 2-3 months’ wage on a diamond engagement ring; however, that is not necessarily practical in today’s market. With the cost of living increasing, it is getting harder to save for things like the perfect diamond engagement ring.

While some people may be in a position to budget a full 2-3 month wage (or more), others cannot afford such an extravagance. So how much SHOULD you spend? This question is incredibly personal and should be tailored to your specific situation. Regardless of your financial situation, it would help if you always bought your diamond engagement ring on a budget. That doesn’t necessarily mean buying a cheap ring; you need to know your budget; otherwise, you may find that you spend far more than you planned. 

The first thing to know is how much money you have available? And no, we don’t mean how much you earn; we mean how much you have left over after all the bills are paid. To find out how much available income you have, you will need to add up all of your expenses, rent, electricity, phone, presents, eating out etc. and then subtract that from your total take-home pay. The number you have just calculated is what you can put towards your diamond ring budget.

Now that you know how much you can save each week, it’s time to decide how long you will keep. There are two ways to fix this, you can either choose how much you want to spend and then calculate how long you need to save, or if you have an engagement day in mind, your total will be dependent on how long you have left to save. For example, if you want to buy a ring that costs $5,000 and you can save $150 a week, you will be saving for eight months! If it is January and you want to propose her birthday in May, you will be able to budget $3,000.

There is no correct answer for buying an expensive engagement ring. You should always purchase your diamond engagement ring on the budget you have set that accurately reflects your available funds; it should also be realistic to your situation. Buying a ring on the lower side of expensive is not a reflection of how much you love her, so don’t feel that you have to spend a fortune. If you choose a ring based on her style and personality, she would love it no matter what!

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