How Much To Spend On An Engagement Ring?

Diamond rings have been given as engagement jewellery for generations. In the song "A Diamond Is Forever," diamonds represent a promise, a woman's undying love, and a couple's commitment to one another forever. What about the question of where people all over the world wear their wedding and engagement rings?

Is it time to go out and find an engagement ring? If you're ready to take your relationship to the next level, a thoughtful proposal and a beautiful ring are essential. After all, this is a moment the two of you have been looking forward to (and planning for). The process of selecting an engagement ring may appear simple at first. Go to a jewellery store, but don't forget your money. Nonetheless, as you peruse the many tiers of rings in varying styles, sizes, and prices, you'll realise that a little bit of homework goes a long way in making the right decision. We will dispel the myths about how much you should spend on an engagement ring and highlight the factors to think about when choosing the best ring for your partner and your budget, as well as walk you through the average cost of an engagement ring.

How much should you spend on an engagement ring?

Be careful not to go into debt over an engagement ring. Diamond industry conglomerate DeBeers made up the "two month's salary" rule to increase consumer spending on diamond engagement rings.

It's foolish, if not financially irresponsible, to spend that much if you don't have the money to do so (and even a little reckless if you can afford it).

Don't listen to other people's recommendations for how much money to spend. You and your future spouse have the final say on how much money to put towards an engagement ring.

You are about to get married, so it is time to merge your finances if you haven't already. Although you might not want to let your significant other know that you are about to make a large purchase, it is a good idea to gauge her expectations of your spending level before making the purchase. Discuss it now rather than later if the figure is significantly higher or lower than what you were anticipating.

Engagement Ring Cost Myths

Spending Three Month's Worth of Your Salary

The most widely believed but untrue rule about engagement ring prices is that it should cost three months' worth of one's salary. She is able to accommodate clients of varying financial means because there is no hard and fast rule about how much money you should spend on an engagement ring.

Finding a Cheaper Diamond Online

Buying diamonds online is riskier than in-store because there is a greater selection of lower-quality stones available. We suggest you get your information from the source itself. If you need assistance, it's best to ask an expert for advice. Since cutting and shaping diamonds is an exact science, there are many subtleties to master for each type of diamond. A diamond consultant should be consulted for assistance in choosing a centre stone. Working with the "Four C's" and the guidance of these experts, you can find the most beautiful diamond within your price range.

Diamond consultants can be hard to come by, but there are plenty of services available online if you can't find one in your area.

The Most Popular Engagement Ring Types

Despite the historical significance of emeralds and sapphires, our research shows that diamonds remain the most popular gemstone. Even now, diamonds remain the most popular choice for engagement rings, with 86% of customers asking for one in the centre of their ring.

However, couples still frequently opt for nontraditional stones. For example, demand for moissanite keeps rising. In 2020, 26 percent of those looking for a non-emerald alternative to a diamond ring chose moissanite. In general, the majority of engagement rings feature a centre stone that is between half a carat and 1.5 carats. 43% of all rings were round cuts, which is consistent with statistics from previous years. 58% of the rings had a diamond in the centre with smaller diamonds on either side, while 25% had a single diamond set in an individually crafted setting.

On the other hand, the gems in an engagement ring aren't the only important part. Even in relationships, the metal you choose is significant. In terms of the metal setting, white gold is by far the most popular option, selected by 48% of respondents. After white gold, 16% of people chose yellow gold, and 13% of people picked rose gold.

Engagement Ring Budgets

The cost of an engagement ring is not something to be laughed off, but where do you even begin to set a budget for such an important purchase? The correct response is complex and highly individual. The first step is to establish a reasonable budget. From there, you can establish criteria like size or quality to aid your search for the ideal ring. It's important to make a financial plan for a purchase like this one, which you'll be looking at every day for the rest of your life.

Making a spending limit before shopping for an engagement ring is a simple way to keep from breaking the bank. From our research, we know that eighty-two percent of people who shop for rings do so with a specific budget in mind. Many engaged couples discuss the wedding budget with their future spouse, but the person making the proposal usually makes the final call. Only 10% of couples in our study agreed on a budget prior to getting married.

Only 67% of ring shoppers were able to keep to their budget, while 20% spent more than they had planned.

Almost all proposers (91%) in The Knot 2020 Jewelry and Engagement Study reported purchasing the ring themselves. Only 2% of respondents' parents were involved in paying for the ring, while 3% said their partner did. Same percentage of engaged couples used a joint account or split the cost of the ring.

When budgeting for an engagement ring, it's smart to factor in the added expense of insurance, too. We found that 68% of ring purchasers also bought insurance for their new jewellery. Considering the high price and sentimental value of engagement rings, we strongly advise all engaged couples to purchase insurance.

How much should an engagement ring cost? 

An old adage that your parents or grandparents probably warned you about still holds true today: In other words, you should be able to afford to spend at least two or three months' worth of your income on an engagement ring. The general rule is that if your monthly income is $4,000, you should spend between $8,000 and $12,000 on an engagement ring; if it's $10,000, you should spend between $20,000 and $30,000, and heaven help you if your significant other finds out you spent less.

The problem with that

For starters, in your grandfather's day, you could work a part-time job and still afford the rent on a one-bedroom apartment in New York City; college tuition was 75%-90% cheaper than it is now at the best universities; health-care costs were a fraction of what they are now; and the most important "experiences" you planned for as a couple were the reception and the kids.

Men who popularised the "two-months' salary rule" likely had fewer financial commitments and a distinct set of priorities than their counterparts.

How about the person(s) responsible for sparking this melee? Agency for the 1930s diamond seller with the best advertising. The British diamond company De Beers used an advertising campaign promoting a "one-month rule" to revive its business and weather the Great Depression. It worked so well that by the end of the century, eighty percent of engagement rings had diamonds and the one-month rule had expanded to two or three. It was "one of the most successful bits of marketing ever undertaken," according to T.C. Melewar, professor of marketing and strategy at Middlesex University, who spoke with the BBC.

How much should an engagement ring cost these days?

The number of nontraditional couples continues to rise. You shouldn't let some arbitrary rule dictate the style of engagement ring you choose; instead, let it symbolise the unique life you've built together.

Perhaps you and your partner have other aspirations for your future together, such as buying a house, paying off debt, starting a family, etc. Perhaps you and your partner are among the increasing number of young families who, after reading about the benefits of shared experiences rather than material possessions, have begun allocating a larger portion of their income towards shared activities like vacations and hobbies.

Plus, buying an engagement ring is now a more collaborative effort than ever before, with many couples shopping for and even sharing the cost of the ring. It was only by being present at every stage that we realised how much work goes into a proposal. It takes a lot of forethought to save up for an engagement ring, shop around, determine whether size or quality is more important, and finally write that check. It was incredible to watch it come together step by step with such deliberateness.

It's been shown that couples who shop for engagement rings online together strengthen their relationships.

Beauty on a budget

No matter how limited your funds are, you can still get the most out of your ring purchase. To begin, you should do your shopping online. A diamond may be marked up by as much as 50 percent at a traditional jewellery store.

Second, read our recommendations for getting the most value out of your diamond purchase. You could choose a halo engagement ring, which makes any diamond look bigger, or you could go for a three-stone ring like Lady Gaga and Meghan Markle.

The gemologists at Clarity will assist you in selecting an ideal engagement ring. Get in touch with us now so they can assist you in finding the perfect ring within your budget and priorities.

How Much Should You Spend on an Engagement Ring?

Three Months' Salary

An expert estimates that the appropriate budget for such a ring is three months' worth of the buyer's salary. This is more of a guideline, though; if the ring buyer is "heavily in debt" or "concerned about job security," they may want to consider a more modest proposal.

One Month's Salary

The conventional wisdom holds that one should spend no more than one month's salary on an engagement ring; this piece of advice, popularised by diamond manufacturer De Beers, is worth about $1. Ads run by De Beers during the Great Depression in the United States popularised the idea that consumers should spend the equivalent of one month's salary on an engagement ring.

Split the Difference

Some modern perspectives recommend finding a happy medium between the two extremes—spending two months' salary on the rock if your significant other thinks three months is too much but one month is too little. If you want to spend a lot of money but not completely ruin your finances, this may be the way to go.

Spend the Average Cost of a Ring

The average cost of an engagement ring in 2012 was $4,000, according to a report by Jewelers of America published in 2013. You can give this information to your prospective spouse and suggest that they follow the national median if you so choose. Although it's a reasonable sum, remember that it has nothing to do with the person's actual wealth.

Forget the Rules

In our opinion, and what we assume to be the opinion of many financially-strained Americans, the ring's price tag should be entirely in the buyer's control. The intended feedback is always appreciated, but if you're not the one footing the bill, it's ultimately not up to you. Many future brides would be offended if their future husband spent that much on an engagement ring. Consider it a matter of personal choice.

Why Two Months’ Salary Is Outdated

Putting aside the equivalent of two months' salary for an engagement ring has always been a lot of money. Although this used to be the standard, it is not applicable to modern times, especially for those who are planning to get married in their twenties or thirties.

The year is not the 1950s any longer.

With rising tuition costs and stagnant starting salaries, our generation is struggling to enter the workforce. With the rising cost of living, we have few options but to either live at home with our parents again or find a roommate or six.

Before having children, nearly all women work, and their earnings often surpass those of men. Most of us can't afford to go from college to being married, buying a house, and having children in under five years, even with two incomes.

In the United States, people are waiting longer before getting married. Therefore, many of us will delay marriage until later in life. But those of us who want to get married shouldn't be made to wait because we can't afford the "traditional" conception of what a wedding should cost, from the diamond to the altar.

Remember That 'Thoughtful' Doesn't Mean 'Expensive'

Your love isn't proportional to the size of the ring you buy. To show your thoughtfulness, you don't need to spend a lot of money on an engagement ring. You have your pick of two absolutely breathtaking engagement rings: one with a 0.9 carat round diamond set in vintage white gold, and the other with a 2.01 carat round diamond set in a white gold halo. It is possible to purchase diamond rings of your dreams for a much lower price than you might think.

No matter how many carats your ring has or how much money you spend, the care you put into designing it will be appreciated by the one you're giving it to. Choosing the perfect, unique ring is more important than anything else you could do for your significant other.

Cleanliness is also very important, especially for the eyes. While this piece focuses on the total cost of the ring, the clarity of the diamond chosen for it is still an important consideration. Our recommendation is to look for the most inexpensive "eye-clean" diamond possible, although price isn't everything. The term "eye-clean" is used to describe diamonds that may have inclusions when viewed through a microscope or loupe, but are invisible to the unaided human eye.

Conclusion

Diamond rings have long been the traditional symbol of a couple's promise to one another and the woman to whom it is given. The average cost of an engagement ring and the various factors to think about when making your final decision are both crucial. When shopping for an engagement ring, it's important to consider both your budget and your partner's expectations. Diamonds, emeralds, sapphires, and alternative stones are the most common types of engagement rings. About 58% of engagement rings have a diamond in the centre with smaller diamonds on either side, while about 25% have a single diamond set in a specially crafted setting.

The advice given for getting the most out of an engagement ring purchase is the most vital information presented here. Those are equal to three months' salary, one month's salary, and two months' salary, respectively. As a rule of thumb, a proposal should be equal to three months' salary, but if the ring buyer is "heavily in debt" or "concerned about job security," a lower amount may be appropriate. Though equivalent to one month's salary, this amount is not indicative of a person's wealth. A solution could be to divide the difference between three and two months of pay.

The clarity of the diamond selected for the perfect, one-of-a-kind ring is still an important consideration, but it pales in comparison to the importance of the ring itself. When referring to diamonds, the term "eye-clean" refers to stones that may have inclusions under a microscope or loupe but are not visible to the naked eye.

Content Summary

• If you're ready to take your relationship to the next level, a thoughtful proposal and a beautiful ring are essential.
• The process of selecting an engagement ring may appear simple at first.
• We will dispel the myths about how much you should spend on an engagement ring and highlight the factors to think about when choosing the best ring for your partner and your budget, as well as walk you through the average cost of an engagement ring.
• You and your future spouse have the final say on how much money to put towards an engagement ring.
• You are about to get married, so it is time to merge your finances if you haven't already.
• Although you might not want to let your significant other know that you are about to make a large purchase, it is a good idea to gauge her expectations of your spending level before making the purchase.
• The most widely believed but untrue rule about engagement ring prices is that it should cost three months' worth of one's salary.
• A diamond consultant should be consulted for assistance in choosing a centre stone.
• Even now, diamonds remain the most popular choice for engagement rings, with 86% of customers asking for one in the centre of their ring.
• In general, the majority of engagement rings feature a centre stone that is between half a carat and 1.5 carats.
• The first step is to establish a reasonable budget.
• Making a spending limit before shopping for an engagement ring is a simple way to keep from breaking the bank.
• Only 10% of couples in our study agreed on a budget prior to getting married.
• Only 67% of ring shoppers were able to keep to their budget, while 20% spent more than they had planned.
• Same percentage of engaged couples used a joint account or split the cost of the ring.
• When budgeting for an engagement ring, it's smart to factor in the added expense of insurance, too.
• Considering the high price and sentimental value of engagement rings, we strongly advise all engaged couples to purchase insurance.
• Men who popularised the "two-months' salary rule" likely had fewer financial commitments and a distinct set of priorities than their counterparts.
• It worked so well that by the end of the century, eighty percent of engagement rings had diamonds and the one-month rule had expanded to two or three.
• The number of nontraditional couples continues to rise.
• You shouldn't let some arbitrary rule dictate the style of engagement ring you choose; instead, let it symbolise the unique life you've built together.
• Perhaps you and your partner have other aspirations for your future together, such as buying a house, paying off debt, starting a family, etc.
• Plus, buying an engagement ring is now a more collaborative effort than ever before, with many couples shopping for and even sharing the cost of the ring.
• It takes a lot of forethought to save up for an engagement ring, shop around, determine whether size or quality is more important, and finally write that check.
• An expert estimates that the appropriate budget for such a ring is three months' worth of the buyer's salary.
• The intended feedback is always appreciated, but if you're not the one footing the bill, it's ultimately not up to you.
• Many future brides would be offended if their future husband spent that much on an engagement ring.
• Consider it a matter of personal choice.
• Putting aside the equivalent of two months' salary for an engagement ring has always been a lot of money.
• Although this used to be the standard, it is not applicable to modern times, especially for those who are planning to get married in their twenties or thirties.
• Most of us can't afford to go from college to being married, buying a house, and having children in under five years, even with two incomes.
• Your love isn't proportional to the size of the ring you buy.
• To show your thoughtfulness, you don't need to spend a lot of money on an engagement ring.
• It is possible to purchase the ring of your dreams for a much lower price than you might think.
• Choosing the perfect, unique ring is more important than anything else you could do for your significant other.
• Cleanliness is also very important, especially for the eyes.
• While this piece focuses on the total cost of the ring, the clarity of the diamond chosen for it is still an important consideration.
• Our recommendation is to look for the most inexpensive "eye-clean" diamond possible, although price isn't everything.