In 2018, the average price of an engagement ring was $5,680. But is that a reasonable price for you?
We’ll walk you through how to determine the right budget for you if you are at a loss for how much to spend on an engagement ring.
Forget the Old “X-Months” of Salary Rule
Perhaps you have heard the old 1-, 2- or 3-month’s salary rule. While this can be a great place to start, it shouldn’t be the only factor you consider. In fact, the 1-month rule started as a marketing campaign to sell larger rings. It has since increased to two or even three months salary. For a lot of people, this just doesn’t make sense.
Set a Budget
Make sure you have a budget in mind before you walk into a jewelry store. Figure out when you would like to propose and what you can reasonably afford between now and then. Your budget will help you decide what kind of stone you purchase, how big it is and how intricate the band is.
Consider your current financial responsibilities like rent or mortgage payment, your car note and student loans. Make sure you can afford the budget of your ring.
You should also keep in mind your future income. Do you anticipate it changing in the near future? If so, make sure you factor that into your budget. With that in mind – don’t go overboard with your budget if you expect a raise.
Know Your Partner’s Expectations
Are they expecting a ring of a certain size or metal? Do they have a preference in center stone? If you feel you are limited by budget, make sure you have a conversation with your partner about how you can purchase a ring that works for both of you. You could even go ring shopping together to get ideas (and without ruining the surprise)
Use Money Saving Tips If Necessary
There are a few things you can do to save money when purchasing an engagement ring.
Lab-grown diamonds often have fewer impurities than mined diamonds and they come at a significantly lower price. This will allow you to get more carats for your dollar.
Halo rings are also a great option. Halo rings are made up of smaller stones that encircle a larger center diamond. This makes the center stone look much larger than it is without having to pay the price of a larger stone. Bonus points – halo rings are hugely on trend right now.
Working with a private jeweler can also help you get some money-saving tips based on your specific wants. Due to their decades of experience in jewelry they can come up with creative ways to get you what you want within your budget that a retail salesperson at a big box store cannot.
No matter what, your engagement ring will be a treasured memento of your relationship. To being planning for your future engagement ring, contact The Austin Diamond Room for a private appointment. We will help you find the perfect ring for you and your significant other.