Forget rules like spending three months' salary on an engagement ring. Your engagement ring budget depends on your financial situation. It is possible to buy a beautiful ring on a budget.
Posted By Jerry Graham
Posted In Budgeting
Last Updated: 04/12/2023
You’ve met your soulmate.
It’s time to propose. You know how you want to ask and where you want to ask, but what about the engagement ring?
Engagement rings are a sign of your lasting love and commitment. You can’t really put a price on something so symbolic, but you will have to. However, most people don’t know the national average price of a 1-carat engagement ring off the top of their head.
So how much should you spend on an engagement ring?
Table of Contents
- What Is the Three-month Salary Rule?
- How Much Does an Engagement Ring Cost?
- How Much Should You Spend on an Engagement Ring?
- Engagement Ring Budgeting
- How To Buy an Engagement Ring on a Budget
- 1. Research Prices
- 2. Know What You Want in a Diamond
- 3. Choose the Right Cut
- 4. Ask for Diamonds That Weigh Slightly Less Than the Most Popular Sizes
- 5. Add a Halo Around the Center Diamond
- 6. Consider Alternatives to Natural Diamonds
- 7. Choose Alternatives to Platinum
- 8. Replace the Center Diamond With a Gemstone
- 9. Make Sure the Jeweler Has a Warranty Policy
- 10. Consider Bringing Your Partner With You
- 11. Negotiate
- 12. Look Into Financing Options
- 13. Buy a Pre-owned Engagement Ring
- 14. Get a Starter Ring
- Buying the Right Engagement Ring for Your Partner and Your Budget
What Is the Three-month Salary Rule?
The “three months’ salary” rule is a traditional guideline that suggests spending three months’ salary on an engagement ring. This three-month rule of thumb originates from a marketing campaign the De Beers diamond company ran in the 1930s to encourage people to spend more on diamonds.
Not everyone is willing or able to spend 25% of their annual salary on an engagement ring. Your budget doesn’t have to be guided by a marketing gimmick. Determine a budget that is comfortable for you and your financial situation.
How Much Does an Engagement Ring Cost?
Engagement rings are available at a wide range of price points. You can spend $1,000, $5,000, $10,000, or more.
Many factors influence the average engagement ring cost, including:
- The center gemstone
- The design
- The metals used
- Where you buy it
- When you buy it
What matters most is the bond you share with your partner, not the engagement ring price.
How Much Should You Spend on an Engagement Ring?
According to a survey by the wedding website The Knot, couples spent an average of $5,800 on an engagement ring in 2022. About one-third of respondents spent between $1,000 and $4,000 on their engagement rings.
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The age-old tradition of spending three months’ salary on an engagement ring is clearly no longer accepted. The three-month rule would have someone earning $70,784, the current U.S. median household income, spend around $17,700 on a ring. That’s a far cry from what people are actually spending.
Engagement Ring Budgeting
When determining how much to spend on an engagement ring, the first thing to do is focus on what you can realistically afford. You also have to consider your income, expenses, savings, and financial goals.
You can throw out salary-related rules or start with a smaller percentage, like 4 or 5 percent. See what that buys you by doing some comparison shopping. Determine how that amount would affect your finances.
You can also figure out how much to spend on an engagement ring by looking at it in the context of your total wedding budget. If you and your future spouse plan to elope somewhere cheap to keep wedding expenses down, you might splurge on a larger diamond. If you want a destination wedding and honeymoon, you could cut back a bit on the engagement ring and wedding bands.
Depending on how soon you intend to propose, you may need to find ways to scale back your spending or increase your income. You can put a little every month toward your engagement ring fund or you can put any and all extra money into it.
How To Buy an Engagement Ring on a Budget
Buying an engagement ring signifies a lifelong commitment. It’s a big decision with a lot to consider. It’s also a financial decision.
Here are 14 tips for buying an engagement ring that won’t blow up your budget.
1. Research Prices
Before purchasing an engagement ring, it’s essential to research prices. Visit multiple jewelry stores, both online and in-person, and compare prices. This will give you a better understanding of the average cost and help you find the best deal.
2. Know What You Want in a Diamond
It’s essential to understand the 4 C’s of diamond quality: carat, cut, color, and clarity. The cut is the most important factor to consider. Cut determines the diamond’s brilliance and sparkle.
The Gemological Institute of America (GIA) system grades diamond cuts as Excellent, Very Good, Good, Fair, and Poor. Opt for a diamond with an Excellent or Very Good cut, even if it means sacrificing diamond carat weight. Grade doesn’t affect the price as much as other Cs and a well-cut diamond will sparkle and stand out when you nail the other Cs.
3. Choose the Right Cut
The most popular diamond cuts, such as round and princess, are more expensive. Consider choosing a less common cut, such as pear or marquise, which can save you money while still looking stunning.
4. Ask for Diamonds That Weigh Slightly Less Than the Most Popular Sizes
Diamonds that weigh just under the most popular sizes can save you significant money without sacrificing quality or appearance. Instead of buying a 1-carat diamond, buying a 0.9-carat stone could be cheaper without a noticeable size difference.
5. Add a Halo Around the Center Diamond
A halo is a circle of smaller diamonds surrounding the center diamond, adding more sparkle and making the center diamond appear more prominent. Adding a halo can make a smaller diamond look much bigger and save you money.
6. Consider Alternatives to Natural Diamonds
Lab-grown diamonds are becoming more popular, as they’re more affordable than natural diamonds but look identical. Another alternative is moissanite, a lab-grown gemstone that looks similar to a diamond but is more affordable.
7. Choose Alternatives to Platinum
White gold is a popular choice as an alternative to platinum. While platinum is a more durable metal type than white gold, it’s also much more expensive. Opting for white gold can save you money while still looking beautiful.
Other alternative metals you might consider include palladium, tungsten, and cobalt. Less expensive metals can be as durable as platinum, look similar, and cost much less.
8. Replace the Center Diamond With a Gemstone
Diamond engagement rings are the norm, but gemstones are cost-effective diamond alternatives. Gems such as sapphires, rubies, and emeralds are becoming more popular as center stones for engagement rings. These gemstones are often less expensive than diamonds but still look beautiful and unique.
9. Make Sure the Jeweler Has a Warranty Policy
When purchasing an engagement ring in person or from an online jeweler, find out about their warranty policy. A good warranty policy will cover any damage or repairs needed in the future, ensuring that your investment is protected.
The warranty will likely cover things like small scratches and prong replacement. There may be terms and conditions, though, like having to bring the ring in for inspections periodically. Understand what is and is not covered by the warranty before you plunk down your money.
10. Consider Bringing Your Partner With You
Traditionally, the marriage proposal and engagement ring are a surprise. Many go to great lengths to make their surprise proposal unique, unexpected, and memorable. However, there’s nothing wrong with couples choosing the engagement ring together.
Ring shopping can be another exciting experience you can share as a couple. It can also take pressure off you to find the perfect engagement ring on your own. There’s no guessing about ring size, yellow gold vs white gold, diamond shape, or setting style.
11. Negotiate
If you’re buying in-person rather than online, try haggling. Jewelry has a high markup, so there may be some wiggle room on price. Here are some things negotiating tips:
- You might have better luck negotiating at an independently-owned shop rather than a chain jewelry store.
- Don’t shop around peak sales times like Christmas or Valentine’s Day.
- Shop when the store is less busy. Jewelers aren’t likely to negotiate with you in front of other customers.
- Mention you’re shopping around and be willing to walk.
You can save hundreds of dollars, even if you only manage a five or 10-percent discount. You won’t get any discount if you don’t ask, though.
12. Look Into Financing Options
If you can’t afford to pay for the engagement ring outright, look into financing options. Many jewelry stores offer financing plans, allowing you to make payments over time. You can also find a credit card with a 0% introductory rate, use it for the ring, and pay it off as fast as possible.
Putting a high-ticket item on a high-interest credit card or payment plan can result in an enormous amount of interest over time. Carefully consider the interest rate and how the monthly payment affects your finances. You don’t want to start off your marriage saddled with debt.
13. Buy a Pre-owned Engagement Ring
Buying a pre-owned engagement ring can save you significant money while still getting a beautiful ring. A vintage or antique ring guarantees your future spouse will have something unique that can’t be found at a mall jewelry store. Older diamond rings can be much more affordable than something newer from a big-name jeweler.
You might want to discuss it with your partner first, though. Not everyone will love the idea of a ring originally intended for someone else.
14. Get a Starter Ring
If you’re on a tight budget but still want to propose with a ring, consider getting a starter ring. A starter ring is a simple, inexpensive ring that can be worn until you can upgrade to a more expensive engagement ring. It’s a great way to still have a special ring for the proposal without breaking the bank or taking on credit card debt.
Buying the Right Engagement Ring for Your Partner and Your Budget
Your engagement ring will be the most important piece of jewelry your partner owns. It’s important to determine your budget before you start ring shopping and stick to it.
When determining your budget, consider your financial situation and what you can afford without causing financial stress.
It’s easy to get swept up in the excitement and go overboard with your engagement ring purchase. Stay within your price range. The price of the ring does not measure how much you love your partner or how committed you are.
You can find a beautiful ring that fits your budget by setting a spending limit, researching prices, understanding diamond quality, and considering alternatives. Remember to consider financing options, warranties, and bringing your partner with you to choose the ring. Whatever ring you choose, it’s important to remember that the love and commitment the ring represents truly matter.
Image credits: Unsplash
Jerry Graham
Jerry is a personal finance enthusiast, side hustler, and freelance web developer who began his career in financial services. He co-founded KindaFrugal.com, a personal finance and frugal living blog. His insights have appeared on MSN, Newsweek.com, HerCampus.com, Mashed.com, and many others.
FAQs
How Much Money Should You Spend on an Engagement Ring? ›
General Rule: You should spend at least 2 months salary on the engagement ring. If, for example, you are making $60,000 per year, you should spend $10,000 on the engagement ring.
What is a realistic budget for an engagement ring? ›How Much Should an Engagement Ring Cost? A one carat engagement ring typically costs around $5,500, but most couples spend over $6,000—and 7 percent spend over $10,000.
Is $20,000 enough for an engagement ring? ›According to tradition, the amount you choose to spend on an engagement ring should approximate the amount of your monthly salary times two. By this measure, anyone who earns $2,000 a month should be looking at models in the $4,000 range. For someone earning $10,000 a month, a $20,000 ring would be about right.
Is $5,000 dollars enough for an engagement ring? ›Is $5,000 Enough for an Engagement Ring? Yes. A budget of $5,000 is absolutely enough to buy a beautiful engagement ring that your fiancé-to-be will love. For example, this stunning 1.2 carat, K color, VVS1 round diamond set in a beautiful 18K yellow gold solitaire ring from James Allen is $4,860.
Is $3000 enough for an engagement ring? ›Yes, $3,000 is definitely enough for an engagement ring. You can get a beautiful, high-quality diamond and a setting with this budget.
What is the 3 months salary for an engagement ring? ›It's known as the "three months' salary" rule, and it implies that a buyer should put three months of their salary toward a sparkler for their future spouse. For context, The Knot 2021 Jewelry and Engagement study found that the average cost of an engagement ring in the US is $6,000.
How am I supposed to afford an engagement ring? ›You can finance an engagement ring a few different ways. No-interest options — for those who qualify — include zero-interest credit cards, "buy now, pay later" and in-store financing. Personal loans, with rates starting around 6%, are another financing option.
What do most people spend on an engagement ring? ›According to The Knot 2022 Jewelry and Engagement Study, the average cost of an engagement ring is currently about $6,000. If you're deciding how much to spend on an engagement ring, there are several factors to consider. While $6,000 is the national average cost of a ring, the spend per couple varies.
Is $10 K too much for an engagement ring? ›$10,000 is not too much for an engagement ring, as long as it fits in with your budget, as you can design a stunning ring with a well-cut diamond that's over 1 carat with this budget.
How many carats can $20 K buy? ›For $20,000, you'll be able to afford a diamond between 2-2.50 carats, without sacrificing much in any other areas. For a $15,000 engagement ring, however, you're looking at 1.50-1.80 carats as the sweet spot for all-round beauty and value, and to be able to pair with a gorgeous setting.
Is 25k for engagement ring too much? ›
According to data published by Rapaport, the average amount spent on an engagement ring is $6,000, with around a third of all couples spending between $1,000 and $4,000. So, with a $25,000 engagement ring budget, you'll be able to afford something far above average.
Do people negotiate engagement rings? ›It is indeed completely appropriate to negotiate the price of any piece of jewelry. Jewelers know this and will expect it. That being said, it's important to note that the commercial jewelry chain stores (and brand name jewelry stores) will almost always immediately shoot down your negotiating attempts.
Do guys buy their own engagement ring? ›Traditionally, the man will buy his partner their engagement ring ahead of the proposal. Sometimes, the partner will choose their ring after the proposal. In both of these scenarios, that still leaves the man questioning whether he will have to pay for his own ring, or if the partner is expected to pay.
Is $2000 expensive for an engagement ring? ›No, a $2,000 engagement ring is not cheap, and can be quite stunning. The quality of your ring depends on the diamond's cut and your setting, along with which vendor you choose.
Is 50k a lot for an engagement ring? ›First of all, a 50 thousand dollar engagement ring budget can literally get you any ring setting of your choosing. Whether it is a simple solitaire ring or a high-end designer setting, there is going to be plenty of budget left over for the center stone.
Is $15000 a lot for an engagement ring? ›$15,000 is a significant budget for an engagement ring, meaning you'll have plenty of options to choose from when it comes to diamonds and settings. In fact, this budget puts you well within the top seven percent of couples when it comes to engagement ring spending.
Who came up with 2 months salary engagement ring? ›After over 135 years in the industry, we can tell you with confidence that the "two month's salary" rule is a myth. It's started as a marketing ploy that came from the iconic De Beers 1930s campaign to generate buzz around diamonds.
How to propose when she wants to pick the ring? ›- If you know your partner wants to choose their engagement ring themselves then it's a good idea to find an alternative to get down on one knee with, before you go shopping later! ...
- Propose with a memento of some kind. ...
- Ring box. ...
- Write a poem, song or letter. ...
- Something old. ...
- Suggest a ring tattoo. ...
- Adopt a pet.
To put that number into perspective, the three-month rule means that someone making $50,000 per year ought to spend $12,500 on the engagement ring. If a budget of three months' income seems like too big of a stretch for your lifestyle, you've got plenty of company.
Should a girl help pay for engagement ring? ›When it comes to who pays for the wedding or the engagement ring, there's no hard and fast rule that “the proposer” needs to shell out all the money. In fact, more and more, couples are choosing to buy engagement rings and wedding bands together or consider it a team purchase.
How long between ring purchase and proposal? ›
The best time to buy an engagement ring is at least six weeks before the proposal, but generally, three months prior is a better timeline.
What is promise rings for girlfriend? ›A promise ring is a ring given from one person to another in a romantic relationship to signify their fidelity and commitment, often (but not always) preceding an engagement.
What is the average engagement gift? ›How much money do you give at an engagement party? The standard amount to give as a wedding gift is $100 to $200. Give less than this as an engagement party gift. Somewhere between $50 and $75 is appropriate.
Is $200 too cheap for engagement ring? ›Affordable engagement rings under $500 or even $200 should be considered a sign of critical and analytical thinking which is crucial to making the marriage union a success.
How many carats can you get for $10000? ›Typically, a $10,000 budget can allow you to buy a diamond between 0.75 carats and 2 carats. If you opt for a 0.75-carat stone, it measures about 5.7 mm. Meanwhile, the 2-carat diamond measures about 8.1 mm.
How many carats will $10 000 buy? ›If you're looking for an engagement ring under $10,000 then I would recommend that you go with something around 0.90-1-carat and 1.5-carat stones depending on your budget and what quality of diamond suits it best! A 2-carat diamond or slightly bigger diamond may be possible if the grade isn't too high.
Is it cheaper to buy an engagement ring cash? ›If you pay for your engagement ring in full right away, you won't have to pay interest like you would with some financing options. This means that, ultimately, paying cash upfront can help you save money on your engagement ring.
What is a respectable carat size? ›The range of 1.0 to 1.9 carats is by far the most popular, but there are noticeable peaks at the 0.70 – 0.79 range, the 0.90 – 0.99 range and the 1.50 – 1.59 range. It's great to see that people take our advice and go for a diamond that's slightly lighter or heavier than industry cutoff weights to get the best value.
Is 2 carats considered big? ›Is a 2 carat diamond considered to be big? The average carat weight for a diamond engagement ring is about 0.9 carat, meaning a 2 carat diamond is definitely considered big.
What is an impressive carat size? ›3.00 Carats
For a truly stunning ring, a 3.00-ct diamond may be just what you need. At this weight, there's no doubt you'll have a big rock. However, a ring like this has a big price, too. For a three-carat diamond with excellent cut and color, you'll want to budget about $35,000.
How much should a guy spend on a wedding ring? ›
The average cost of a wedding band for men is about $510, according to The Knot. The price can vary significantly based on the metal used. Titanium is the least expensive, while platinum costs the most.
Is $12000 a lot for an engagement ring? ›The Salary Rule says you should spend two to three months' salary on the engagement ring. For example, if you earn $48,000 per year, you should spend $8,000 to $12,000 on the ring. If you earn $60,000 per year, you should spend $10,000 to $15,000.
Is $30,000 a lot for an engagement ring? ›The diamond cut, weight, and quality are the biggest factors in an engagement ring's final cost. With a $30,000 budget, you can easily find one with an impressive diamond of high color and clarity grades. However, the wide range of options available for this price may be overwhelming.
Who usually buys the engagement ring? ›The most traditional way to go about this would be the bride pays for the groom's wedding ring plus a gift and the groom pays for the engagement ring and matching wedding band for the bride.
What percentage of couples shop for engagement rings together? ›In fact, 62 percent of couples now go engagement ring shopping together. If you don't feel comfortable doing so, be sure to communicate those feelings to your S.O. Simply tell them that you don't want to do a joint shopping trip because you think it's more romantic to be surprised.
What percentage of engagement rings get returned? ›There are so many factors that go into an engagement ring's value, from the carat to the setting to how old it is. Still, there are general trends, offers Opperman. "It does depend on the ring. However, most of the time we see people getting back anywhere between 40 to 75 percent of the ring's original value."
What is the average time of dating before proposal? ›Most couples date for two or more years before getting engaged, with many dating anywhere from two to five years. Once the question is popped, the average length of engagement is between 12 and 18 months.
Do you wear your engagement ring when you walk down the aisle? ›Traditional Ring Etiquette
Traditional etiquette would require the bride to wear her engagement ring on her right ring finger to walk down the aisle. During the exchanging of the rings, the groom would place the wedding band on the bride's left finger.
How to Wear Your Engagement and Wedding Rings. Traditionally, you wear your engagement ring and wedding ring together on the fourth finger of your left hand. As far as how to stack them, tradition holds that you'll wear the wedding band inside the engagement ring so that it's closer to your heart (aww).
How much should a 21 year old spend on an engagement ring? ›General Rule: You should spend at least 2 months salary on the engagement ring. If, for example, you are making $60,000 per year, you should spend $10,000 on the engagement ring.
How long do engagement rings last? ›
Whether you shop together or leave it in the hands of a soon-to-be spouse, an engagement ring should last a lifetime. But, after two years of wedding and proposal postponements, couples are eschewing tradition and going with their gut when it comes to design details—and that includes wedding jewelry.
Is $7,000 enough for engagement ring? ›81% of Americans think the engagement ring shouldn't cost over $5,000, but the national average actually spent is over $7,000. Don't be pressured into a ring you can't afford. Ignore the "two months salary" rule and set a budget for a ring that she'll love. It's always good to have a basis for comparison.
Is 4 carat too big for engagement ring? ›In terms of national and international averages, a four-carat diamond is considered a 'big' diamond. In the right setting, it is an excellent carat weight for engagement rings and every day jewelry, but is also impressive enough to be reserved for evenings and occasions.
Why should an engagement ring cost 3 months salary? ›The three-month rule stems from a marketing campaign the De Beers diamond company ran in the 1930s that sold the idea that true love and commitment could only be shown if a man spent a month's salary on his wife's ring.
How much should an engagement ring cost 3 months salary? ›Three months' salary looks very different for different people. Think about it. If you make $100,000 a year, you're supposed to spend $25,000 on an engagement ring. If you make $200,000, the ring clocks in at $50,0000.
Is $2500 enough for an engagement ring? ›Although you won't be able to buy an enormous diamond or ornate setting, a budget in the $1,000 to $2,500 range is definitely enough to buy a beautiful engagement ring. For the best value for money, we recommend sticking with diamonds in the 0.45 to 0.90 carat range.
Is 2k too cheap for an engagement ring? ›A budget of two thousand dollars for a diamond ring isn't exactly high but it's still a decent price range to find something nice. While it is possible to find affordable options that are both beautiful and elegant, you shouldn't harbor any unrealistic expectations like buying a 1 carat diamond ring with a 2k budget.
Is $1000 too cheap for an engagement ring? ›Bottom Line Recommendation: Even with a budget of $1,000 or less, you will still be able to buy a beautiful and elegant diamond ring. By knowing where's best to allocate your budget, you can easily come away with a gorgeous engagement ring without spending too much.
Is $15000 too much for an engagement ring? ›$15,000 is a significant budget for an engagement ring, meaning you'll have plenty of options to choose from when it comes to diamonds and settings. In fact, this budget puts you well within the top seven percent of couples when it comes to engagement ring spending.
How much do most people spend on a ring? ›According to a 2022 study from Credit Donkey, most couples reported wanting to spend between $1,000 and $5,000, though the average cost of an engagement ring was around $5,225. (This is actually down from 2019, when the average rang in at a whopping $7,750.)
Should an engagement ring cost 2 months salary? ›
After over 135 years in the industry, we can tell you with confidence that the "two month's salary" rule is a myth. It's started as a marketing ploy that came from the iconic De Beers 1930s campaign to generate buzz around diamonds.
Do you haggle for engagement rings? ›It is indeed completely appropriate to negotiate the price of any piece of jewelry. Jewelers know this and will expect it. That being said, it's important to note that the commercial jewelry chain stores (and brand name jewelry stores) will almost always immediately shoot down your negotiating attempts.
Should I pay cash for engagement ring? ›Most financial experts would say that if you can pay for your engagement ring in cash upfront, you probably should. If you pay for your engagement ring in full right away, you won't have to pay interest like you would with some financing options.
Is a 2 carat ring a lot? ›Is a 2 carat diamond considered to be big? The average carat weight for a diamond engagement ring is about 0.9 carat, meaning a 2 carat diamond is definitely considered big. With 2 carat engagement rings, the diamond is noticeable and eye-catching.
Is 1 carat a lot for an engagement ring? ›When it comes to diamond rings, many people assume that bigger automatically means better. But that's not always true. Opting for a 1 carat diamond ring is often the best choice for most couples — both in price and practicality. Even better: It's a classic, timeless style that'll never go out of fashion.