Buying an engagement ring is an exciting step in preparing for a marriage proposal. However, it can also be daunting to figure out how much to spend on a ring. There are a few rules of thumb that can help guide your engagement ring budget.
The Three Months’ Salary Rule
One traditional rule is that you should spend about two to three months’ salary on an engagement ring. This rule became popular in the 20th century, likely due to successful marketing campaigns by the diamond industry.
The idea is that splurging on an expensive ring shows your commitment to the relationship. However, this rule has declined in popularity in recent decades. Spending such a large portion of your income is not always realistic or necessary to show love.
The Pros
- Demonstrates your financial sacrifice for the relationship
- Allows purchase of a larger, higher quality diamond
- Adheres to traditional norms
The Cons
- Very expensive, not affordable for many couples
- Overspending can lead to debt or financial strain
- Does not consider the receiver’s preferences
The One to Two Months’ Salary Rule
A more common modern rule is to spend one to two months’ salary. This allows for a meaningful ring at a more reasonable price point for most middle class income earners.
This amount allows flexibility based on your individual financial situation. It encourages discussion between partners to decide an affordable budget. One month’s salary is about $5000 for the median monthly income of $6000 in the US. Two months’ salary is around $10,000.
The Pros
- More affordable for the average income
- Still allows purchase of a quality ring
- Encourages communication about budget
The Cons
- May not allow for luxury ring at lower incomes
- Spending is not tailored to each couple’s finances
The Budget Method
Many modern couples prefer to set a dollar budget for the ring that fits their finances instead of a salary-based rule. This allows complete personalization and affordability.
Experts recommend discussing an engagement ring budget early with your partner. Look at your income, expenses, savings, and debt to decide what’s reasonable. Make sure you’re aligned to avoid overspending strain.
Here are some average budget ranges to consider based on your financial situation:
Budget | Price Range |
---|---|
Low | $500 – $2000 |
Average | $2000 – $4000 |
Moderate | $4000 – $8000 |
High | $8000 – $10,000+ |
The Pros
- Completely customizable to your means
- Encourages open communication and financial planning
- Reduces risk of overspending or debt
The Cons
- May require buying a smaller diamond
- Takes effort and coordination as a couple
- Less traditional approach
Factors to Consider
Here are some additional factors to consider when deciding your engagement ring budget:
Your Partner’s Preferences
What ring styles and diamond shapes does your partner find most attractive? Do they have strong preferences for or against certain colors, band metals, or stone sizes? Tailor your budget to afford their ideal ring.
Customization Costs
Working with a jeweler to custom design a ring often increases the price. Unique colored gems or band engraving can also add cost. Keep custom add-ons in mind.
Ring Trends
Bridal ring trends change over time. Halo settings, rose gold, and oval diamonds often come with higher price tags than classic solitaire silver rings with round stones. Consider timeless versus trendy styles.
Diamond Quality Factors
Prioritize the 4Cs (color, clarity, cut and carat weight) that are most important to your partner. You may be able to find savings by selecting a lower-color grade or going slightly under one carat.
Your Location
Ring costs vary by an average of 37% across different regions of the US. According to The Wedding Report, average engagement ring spend is around $6,000 nationwide, but over $8,000 in the West and under $5,000 in the South.
Engagement Ring Budget Quiz
Take this quick quiz to estimate an ideal ring budget starting point personalized to your finances:
- Your annual household income is closest to:
- Under $50,000
- $50,000 – $99,999
- $100,000 – $150,000
- Over $150,000
- Your current savings are closest to:
- Under $5,000
- $5,000 – $15,000
- $15,000 – $30,000
- Over $30,000
- Your partner’s ideal ring style is best described as:
- Simple and classic solitaire
- Vintage inspired ring
- Unique custom design
- Luxury designer diamond
- Your debt excluding mortgages is closest to:
- $0 – $5,000
- $5,000 – $20,000
- $20,000 – $50,000
- Over $50,000
- Your top priority in selecting a ring is:
- Affordability
- Memorable design
- High diamond quality
- Prestige and luxury
Based on your responses, a reasonable engagement ring budget to consider is $____.
This budget recommendation is personalized based on factors like income, savings, ring style preferences, debt levels and financial priorities. Make adjustments from this starting point as needed to find the ideal engagement ring that’s meaningful, affordable and suited to your partner’s wishes.
Conclusion
While the traditional three month’s salary engagement ring rule is becoming outdated, it’s still important to carefully budget and communicate when ring shopping. There are no perfect rules that apply to every couple. Discuss an affordable, reasonable budget with your partner by considering your financial situation, ring style preferences, and spending comfort levels. This will lead to finding the perfect ring that excites you both!