Incredibly enough, more than 80% of engaged couples are millennials. But with the average price of engagement ring costs on the rise, it can be beyond difficult to afford the hefty tag that comes with it.
Are you wondering how much are you supposed to spend on an engagement ring?
If yes, we can break down the cost of engagement ring prices for you. Find out how much should you spend on an engagement ring below!
Think About Your Partner’s Expectations
Before we get started, it’s time to consider how much money you should spend on an engagement ring in the first place.
To make this difficult decision, there are several factors to mull over. This includes your financial situation and your partner’s engagement ring expectations. Using both emotions and logic, it is possible to find the perfect balance between these options.
However, everyone’s situation is a bit different. That is why it is so essential to know exactly where you and your partner stand first. Warning: the old “two months’ salary rule” is a more outdated tip than you’d think as well.
It’s common for people to save two months of their income to spend on a quality engagement ring. So, if someone makes $1,000 a month, they can usually plan to spend around $2,000 on their engagement ring. And if someone makes $2,500 every month, they typically plan to spend nearly $5,000 on their engagement ring.
But here’s the catch – this outdated rule of thumb doesn’t work well for everyone.
To make sure that you cover all of your the bases, try to ask your partner about the type of:
- Ring style
- Diamond shape
- Diamond setting
Now that we’ve got that covered, you can expect to spend anywhere between $1,000 and $5,000 on the best engagement ring. However, the average cost of engagement rings is often more than $6,000.
That being said, chances are that your partner will be satisfied with whatever you give them, as long as you spend the right amount of time and effort to do so. Trust us – it’s not worth going bankrupt over!
Consider Your Financial Budget
Another thing to consider before you splurge on an engagement ring is your financial budget. Yes, you read that right. As you may already know, your finances will merge with your partner once you tie the knot.
Therefore, it’s not worth it to get into a wild amount of debt just to pay for an impressive engagement ring. If you’re like most working professionals, you probably have more than enough debt to sift through as it is. To figure out your financial stability, you must first calculate your:
- Current income
- Annual expenses
- Savings account
- Future income
To get started, think about things such as bills, food, or any other recurring debts that you have, such as car payments or student loans. Also, how much money you can say once you cut out extra expenses, like daily cappuccinos or nightly food deliveries.
Although this might be difficult, you should also think about your future income. For example, those who are at a workplace with a significant amount of room for growth should have nothing to worry about. Of course, that doesn’t mean that you should “go overboard” in the budget department.
Using our tips as your guide, it should be easy to figure out how much you should spend on a ring. It’s also best to purchase a ring flat out, without any messy financing options that accrue debt. But if you can pass them out within several months, we should how much should be concerned about either.
Remember that it is much cheaper to purchase it and get a ring online than in stores as well!
Save Up Several Months’ Salary
Are you sick and tired of researching, “how many months of salary should I save for an engagement ring?”
As we mentioned above, the old two months’ salary role isn’t exactly the best metric to follow. To tell you the truth, your only concern should be spending the amount of money that you feel most comfortable with. That’s because most people that propose at an early age haven’t reached the peak salary in their careers yet.
On top of that, you may have to consider how much student debt you have as well. Combining this with the “cost of living” in your area, spending too much on an engagement ring might harm you in the end.
Pro tip: lab-created diamonds are an affordable way to show that you care too.
Not sure where to begin? When all is said and done, it doesn’t hurt to set aside at least one months’ salary for your engagement ring purchase. This is most likely as realistic as most young couples can get nowadays, accounting for a much smaller percentage of their salaries.
Whether you need a cash loan or not, it’s up to you to find the most convenient fit for your budget!
How Much Should You Spend on an Engagement Ring?
Ready to stop asking yourself, “how much should you spend on an engagement ring?”
If that’s the case, then you’ve come to the right place. Not only do we have the best tips for finding an engagement ring, but we also have solid advice for your future too.
Now, all that you have to do is pop the big question. We wish you the best of luck!
Curious about how to manage your engagement ring budget?
Contact us about our online loans today!