How Much Should You Spend On An engagement ring?

Two Months’ Salary? Not in This Day and Age

Frequently, people ask me, “How much should I spend on an engagement ring?” My answer is always, “It depends.” Many people choose an engagement ring based upon cost. I want to remind you of three things:

The quality of a more expensive ring may not necessarily be better;
Your fiancée may not want an expensive engagement ring;
An exorbitant amount of money spent on an engagement ring may be better spent elsewhere, like the wedding, a house, or paying down debt.

Traditionally, men spent two to three months’ salary on an engagement ring. Even commercials for jewelers encouraged men to spend three months’ salary for love that would last a lifetime. Obviously, this benefitted the jeweler not the buyer. Today, a man who makes $50,000 a year would spend $12,500 on an engagement ring if he followed that rule!

When the cost of weddings and houses were less and people weren’t in as much debt as they are today, spending two to three months’ salary on an engagement ring was reasonable. In fact, the ability to save that much money during my parents’ generation was common. Now, most people I know would need to get a line of credit to pay for an engagement rings that costs that much money. Let’s face it, buying an engagement ring on credit and putting yourself further into debt is not wise.

Currently, the average amount a man spends on an engagement ring is $4,000. You can spend even less and get the same ring, if you shop around. Shopping online from a reputable company will provide savings and satisfaction.

To give you an example of the savings offered online if you comparison shop, look at the examples for the 1 carat round solitaire. There are up to $2,000 difference in prices for essentially the same ring.

http://www.superjeweler.com/ItemDetail/1ct-Round-Diamond-Solitaire-Ring-in-14k-White-Gold-G-Color-I1-Clarity-3027.asp

http://www.diamond.com/rings/solitaire-diamond-ring-prd_rds_022314.jsp

http://www.zales.com/product/index.jsp?productId=2561615

http://www.amazon.com/Certified-Solitaire-Diamond-Engagement-Clarity/dp/B000UUE20Y/ref=sr_1_14?s=jewelry&ie=UTF8&qid=1315329773&sr=1-14

So before you buy an engagement ring: