How Much To Really Spend On An Engagement Ring - CreditDonkey

Forget the "2 months' salary" rule. Find out how much money you should REALLY spend on an engagement and wedding ring here.

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Thinking of popping the big question soon? One of the first thoughts in your head is probably:

"How much should I spend on the ring?"

This decision is both emotional and rational. You have two major things to consider:

1. Your Lady's Expectations
2. Your Financial Situation

The goal is to find a balance between the two.

Of course, every person's situation is different. And that's why it's important to know where you stand. Do not rely on an outdated two months' salary rule that was invented by a marketer.

Rule of thumb: Spend 2 months of your income on an engagement ring. If you are making $1000 per month, spend $2000 on an engagement ring. If you're making $2500 per month, spend $5000. Sounds simple, but the old 2-month rule of thumb is a BAD idea. We'll explain below.

In this article:

• Engagement Ring Budget Calculator
• Old Rule #1: The Two Months' Salary Rule
• Old Rule #2: Spend the National Average
• Find Your Own Rules Instead
• Things to Consider
• Should You Borrow Money for the Engagement Ring?
• Tips to Save Money on an Engagement Ring
• Average Cost of Engagement Ring by State
• Engagement Ring vs Wedding Ring
• How Much to Spend on Wedding Rings

PRO TIP: You should research pricing online to avoid overpaying. Online retailers are up to 40% cheaper than local jewelers and many offer free shipping and returns. If you want to build your own engagement ring, check out Brilliant Earth.

Your Lady's Expectations

There's no getting around it. The ring does matter. And here's why:

• An engagement ring is a symbol of your love and commitment. It shows you're invested in a shared future.

• Many women already have their perfect ring in mind, down to the style, diamond shape, etc. It'd be a big disappointment to get a ring that's not exactly what she wants. This tool lets you build her dream engagement ring.

• Women are the ones who wear the ring every day. This is going to be the single most important piece of jewelry she owns. And naturally, she wants something that makes her happy to look at and show off to her friends.

How much should you spend on an engagement ring? According to recent surveys, most American couples expect to spend between $1,000 and $5,000 on an engagement ring. The actual average cost for an engagement ring is over $6,000.

With all that said, most women are reasonable and just.

They will love and appreciate the fact that you spent the effort to find the perfect ring. Most women are not looking to bankrupt you with unrealistic requirements.

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Why "2 Months' Salary" Rule No Longer Works

© CreditDonkey

Did you know the two month's rule was started by a De Beers ad? De Beers happens to be the same company that convinced the entire world that men need to propose with a diamond.

If you obey DeBeers' rule, that means that if you make $3,000 per month, you should spend roughly $6,000 on the ring.

However, that rule has some serious flaws. After all, it was invented to get you to pay more money to a diamond retailer.

Deciding how much to spend on an engagement ring based on your salary is the #1 mistake you can make. Spend what you are comfortable with, whether it is $1,000 or $50,000. We'll show you how to find the perfect ring for your budget.

First of all, most people get married in their late 20s, when they are still in the beginning of their careers. They haven't come close to reaching their full earnings potential. Plus, you have to calculate what you actually take home in net pay as opposed to your gross salary. Unfortunately they are quite different.

Secondly, most people graduate with student debt. Combined with the increasing cost of living, spending thousands of dollars on a ring may not be feasible. Especially when you're trying to get out of debt as quickly as possible.

If you want to stretch your budget further, check prices online first. Online retailers offer good quality, usually for much cheaper than a local jeweler.

Other rules: Here are some other "salary rules" you've probably heard:

• 3 months' salary: That's 25% of your earnings on a ring.
• 1 month's salary: This is probably more realistic for young couples today. This is less than 10% of your annual salary. It could be used as the goal, but only you know your personal situation.