Are you planning to propose to your girlfriend or wife? If yes, then you must be wondering whether you should spend three months’ salary or not on her engagement ring. The three months’ salary rule is one of the oldest in the industry, and it originates during the Great Depression when the diamond industry was struggling to sell its products. But, what if you can’t afford to spend three months’ salary on an engagement ring? There are several options available for you to pay for your proposal.
Why you should spend 3 months’ salary on an engagement ring
The old saying that you should spend three months of salary on your engagement ring is not entirely accurate. The rule first emerged during the Great Depression, when the diamond industry was suffering, and it was difficult to sell its products. The rule was later raised to three months as people became more comfortable spending more money. While the ad campaign is still popular today, it has lost its charm and monetary value.
Although spending three months of salary is still acceptable, some people do not feel that they can justify it. For example, a couple earning $100,000 per year would have to spend about $25,000 on their engagement ring. It would be difficult for a couple to afford such a pricey engagement ring, but for others, it may be the right move. The question of why you should spend three months of salary on an engagement ring is an important one.
Alternatives to borrowing money to pay for a ring
If you don’t have good credit, you may have trouble financing your engagement ring. Many lenders charge high interest rates on unsecure loans, and you may be require to have a high credit score before applying for one. Even if you can secure a 0% introductory rate, your rate will increase as the debt continues to build. If you’re looking for a more affordable option, consider a guarantor loan. In exchange for the guarantee that you’ll pay your guarantor loan, you may also improve your credit rating.
Personal loans are another option. These types of loans are unsecure, so you won’t have to put your house up as collateral. You will pay off the loan over a certain period of time, usually several years. A small personal loan may be a practical and affordable way to finance an engagement ring. These loans can also have a fix interest rate, so you’ll know what you owe and when you’ll pay it off.
Cost of a ring compared to other wedding expenses
While a beautiful and unique ring is the ultimate goal of every engaged couple, an expensive engagement ring will likely set their joint financial future back, and is not necessary. The cost of an engagement ring compare to other wedding expenses can be determined by considering your bride’s needs, budget, and lifestyle. Luckily, there are some inexpensive, fully customizable jewelers available. Some of them offer an Inspiration Gallery of popular engagement ring designs and can be custom made at a low price.
The overall cost of an engagement ring depends on many factors, including the center stone size, the quality of the diamond, and the design of the halo or other stones on the ring. The ring’s metal type and brand can also determine its price. A simple solitaire can be purchased for a lower price, and an engagement ring with side stones can be more expensive. Another factor to consider when determining your engagement ring budget is the type of ring setting. If your future spouse loves to wear jewelry, opting for a simple band with a solitaire is the best choice.
Buying a durable ring vs. a more expensive ring
One of the first decisions you’ll need to make is the type of metal you’d like to use for your upcoming ring. Platinum, which is more expensive than 14 and 18 karat gold, is the most durable metal. This metal is incredibly durable, and it will not lose its color over time, even when you use it for daily activities. Additionally, platinum bands are easily polish so scratches won’t affect the color of your ring.
In addition to the durability of platinum and other precious metals, stainless steel is an extremely affordable option. The lustrous surface of stainless steel makes it very attractive, and there are many different finishes for it, including satin, hammered, and polished. Buying a durable ring is a great option because stainless steel doesn’t have to be removed during daily activities.
Saving money on an engagement ring
Purchasing an engagement rings on your partner’s birthday is a romantic gesture, but it can quickly become costly if you don’t save enough money. Even if you’re able to afford the ring, you’ll likely have to use the money you’re saving towards other goals. If your partner has other debt, a ring can end up being a huge hassle. Discuss your monthly expenses with your partner, and find a way to cut down on costs. Talk about your financial goals as a couple, and be sure to include your engagement ring in the list. Some financial goals for your partner could include a wedding, paying off debts, buying a house, starting a family, or putting your kids through college.
A 3 month salary is approximately 25% of your income. A one month salary is 10% of your salary, so this amount is more realistic for young couples. According to recent research, Americans spent $7,750 on an engagement ring in 2019. A one-carat diamond engagement ring costs around $5,500. According to Lanore, 81% of Americans believe the engagement ring should not cost more than $5,000.