So you’re ready to take your relationship to the next level. Congrats! Engagement is a super fun time in your relationship journey…if you’re not broke.
Lots of people make the mistake of spending too much on an engagement ring. But what is too much?
Keep reading as we walk you through the buying process. By the time you’re done, you should have more clarity on how much you should spend on an engagement ring.
Should An Engagement Ring Be Based on Your Salary?
Maybe you’ve heard the old “rule of thumb” that dictates you should spend two to three month’s salary on an engagement ring? This rule makes the math easy, but it grossly oversimplifies how to actually determine what you should spend.
For example, consider someone that makes $60,000 a year. Two to three month’s income would put the ring in the ballpark of $10,000 to $15,000.
I’ll just say it – that’s an insane amount of money to spend on a rock attached to a piece of metal. Especially considering you’ll probably need to start saving for a wedding, honeymoon, and the costs of starting your new life together.
How Much Should You Spend on an Engagement Ring in 2019?
Since we’ve determined the salary-based rule is unrealistic, the question becomes what should determine the amount you spend? I suggest working backward – start with knowing what your future fiance wants in a ring, followed by your personal budget. Then you can find a sweet spot between the two.
What kind of engagement ring does your fiance actually want?
Communication is the key to a successful relationship, so start talking about “the ring” well before you make a purchase. Your main goal should be finding a ring that she’ll love, and that may cost a lot less than you think!
I highly suggest looking at her Pinterest account to see if she’s found anything online that sparks her interest. Consult with her close friends or family members to see if she’s dropped any hints to them in terms of style.
Why It Matters: You may find that your fiance has different priorities. Perhaps she wants a smaller center stone with a more elaborate wedding band. Or she’s interested in gemstones rather than diamonds. Or she’s open to having a massive single stone that is lab-created or a high-quality clear stone like moissanite or white sapphire. All of these characteristics can dramatically drop the price of an engagement ring compared to the traditional standards.
Are you incorporating anything of sentimental value?
A meaningful ring with a heartwarming story behind it may be a great choice. Perhaps you have a family heirloom you can pass along? Or a hand-me-down piece of jewelry where the stones can be incorporated into a more contemporary style? There are even jewelers out there who can make gorgeous custom-designed rings out of materials like wood or meteorite.
Why It Matters: Engagement rings don’t have to be brand new to be meaningful. Many people want a ring that incorporates their unique personality – which means you might find a better fit using alternatives that have more sentimental value.
What are your financial priorities?
Look at your current budget to get a pulse on where you’re at. If you’re working on paying off high-interest loans, consider refinancing through an innovative service like SoFi to reduce your interest and free up more cash to save towards an engagement ring.
Many retailers offer financing on engagement ring purchases, but you might be better off waiting a few extra months if the fine print exposes high interest rates or penalties for paying off the balance early. Consider tightening up on your “fun” expenses, like eating out, to get you to your engagement ring savings goal faster.
Why It Matters: If saving for an engagement ring is a stretch on your budget, consider if you’re ready to be engaged. After all, the step after the engagement is a wedding. If a single piece of jewelry breaks your budget, you definitely aren’t in a good place to start saving for a wedding.
Rather than relying on family or financing plans, you should focus on getting your finances in order. There are lots of resources you can explore here to help you with everything from budgeting (you can use Quicken or any of the Quicken alternatives available) to finding a side gig to bring in some extra cash.
How to Save Money on an Engagement Ring
Before you walk out of the store with a ring, consider these shopping tips that can help save you hundreds of dollars.
Find a diamond alternative
Mined diamonds can be 20-40% more expensive than synthetic diamonds, but they’re both the same thing: sparkly pieces of carbon. Synthetic lab-created diamonds also have the advantage of being less likely to have imperfections that are often found in natural diamonds. If your future fiance isn’t sold on a true diamond but still wants a colorless stone, white sapphires and moissanite are nearly as hard as diamonds and cost much less.
Look for the “slightly off” diamonds
If you absolutely must go with a diamond, there’s still hope for keeping your costs under control! Consider asking for a diamond with a slightly smaller carat weight than usual. For example, a 1.45 carat diamond will look the same as a 1.5 carat diamond to the naked eye but may shave a lot off the price because it’s below the traditional cut-off point.
In addition to weight, take care to look at the different cuts. Some cuts, like emerald, allow the stone to have the most exposed top surface area – making it look huge compared to diamonds of the same size cut differently.
Don’t go for the big solitaire
The most expensive rings are the ones with a design that has a massive center stone. Check out alternative styles that are more affordable – like the stacking rings with smaller stones all the way around – which happens to be incredibly popular in 2019.
Ask for a pay-in-full discount
Most major retailers will offer financing plans on engagement rings. If you have enough saved up, consider asking for a discount in exchange for a payment in full. Not only will this save you on the cost of the ring, it will also save you money by helping you avoiding interest down the road.
Best Places to Buy an Engagement Ring in 2019
If you’re looking for the most bang for your buck without sacrificing quality, check out some of these great options.
Best Online Option for Traditional Diamond Engagement Rings
James Allen is a reputable online retailer that can save you 30-50% off the prices of your typical mall store.
Best Value for Traditional Diamond Engagement Rings
This might surprise you, but wholesale retailer Costco is easily the best option if you’re looking for the most bang for your buck. They have more options than you might imagine!
Best Online Option for High-Quality Synthetic Diamond Engagement Rings
Miadonna offers exclusively eco-friendly lab-created diamonds that are spectacular. Plus, they have an innovative home try-on program so you can make sure you absolutely love the style and fit before ordering.
Best Value for Synthetic Diamond Engagement Rings
It’s 2019, so it should be no surprise that online boutiques like Tiger Gemstones are changing the game when it comes to synthetic diamond ring designs. These are some of the most affordable rings out there!
Best Online Vintage Jewelry Selection
Even if vintage isn’t your style, you’ll love browsing through the different unique pieces featured on Erstwhile. This is also a great place to find a piece that gives you that heirloom look and feel.
Best Online Option for Non-Traditional Gemstones
After looking at the stunning styles available through LaMore Design, you might be convinced that colorless diamonds are just … boring.
It’s 2019 – the perfect engagement ring doesn’t have to cost you months of your salary. Now that you know the tips to shop like a pro and the best places to go, you can shop with confidence.
