Food For Thought: Best of Luck, and congratulations! You may ask why? Well, anyone looking for an answer for the question, “How Much Should I spend On An Engagement Ring?” is almost ready to pop the question, and now the most difficult part is to set a budget for the cost of the ring which you wish to purchase. An interesting fact for you to know is that 7 out 10 women don’t want their partners to pop the question until they have saved enough for their engagement ring. But how would you define ENOUGH? If you already have the budget set aside which obviously I don’t know and for you the question is, is it enough? Is it the right amount to spend on an engagement ring? If you do not have the funds ready then you will fall into a little more perplexed situation. You will be tempted to go into debt for love and may opt to finance the most beautiful engagement ring for your beloved. Before, you think on those lines, read my engagement ring checklist and insurance guidelines. It will surely help you and make you a more informed buyer. When you finance an engagement ring, you knowingly or unknowingly make already expensive ring more costly. With all these realistic situations in mind, let us explore and find out a more practical answer on how much you should spend on an engagement ring?
Some Interesting Facts And Trends On Engagement Rings
- The average cost of an engagement ring in 2013 is between $6000 to $6,300 approx.
- Average diamond size selected for center stone is 1 carat and 1.4 carats total.
- In vogue and preferred diamond shapes by the couple are Round and Princess.
- 1 in every 4 groom spends more than he actually planned on an engagement ring. Hence more than 12% spend more than $8,000 on an engagement ring.
- 1 in every 5 brides selects their engagement ring themselves.
- 5% of the grooms where a man-gagement ring which again is in the range of $400 to $600 approx
A Common Myth On The Cost Of An Engagement Ring
There is a very popular fact which says that you should at least save 3 months of your salary to purchase a good engagement ring. According to me this is completely nonsense. Now, the facts mentioned above are based on statistical data but for me who most of the times think logically, does not make sense coz how can these be related to me? Come on.. How much will I be spending on an engagement ring will be based on some rational thinking and soul searching like:
Can I do with a smaller ring? Which will help me in putting aside the saved money for other expenses related to wedding or, am I ready to go into debt and buy an engagement ring which will last for a lifetime. Just FYI, as per the recent study by theknots.com the average wedding expenditure for the year 2012 was $28,472. Now you decide, how much should you spend on an engagement ring and which event requires more planning and budgeting on your part. Please put your cupid character aside and understand that a ring is something which you will only buy once in your lifetime (I hope so), and it in no way a reflection of your true love but only you can make it a reflection of your bank account.
Is There A Way To Decide On The Perfect Engagement Ring?
Ok, the truth is a perfect engagement ring does not exist. If I give you two identical rings of the same size, color, design and the cost, I bet, you will still meticulously examine the two and still feel that the one you chose is better than the other. This is human tendency, and another aspect of human behavior is that a perfect ring for someone else might not be the best for you. So, the idea of the perfect ring in reality does not exist. What matters is how well you can bridge the gap between what you like and prefer against your set budget. The short, sweet and the best advice is to spend as much as it makes you feel comfortable. Don’t go overboard in excitement thinking that a ring which is way beyond your budget but beautiful is the best way to show your love.
When you visit a jewelry shop inspect all the rings in an incremental price range of $1000, $1.5K, $2,000 and so on… One thing you will notice that you will find good engagement rings in almost all price ranges. Choose the one which fits your budget and if your fiancee is with you, then let her choose one. Remove this thought from your mind that good expensive rings are expensive. The stuff the ring is made off, shouldn’t matter to your heart.
What You Should Know Before Financing An
I am sure that you know that almost all jewelry stores selling engagement rings offer financing to help you buy. You will find offers wherein you can get interest free financing for almost 12 months. But, remember that for the period for which you are not paying any interest should not have any missed or late payments. If you make late payments then you end up paying more as the interest is charged from the date purchase. Interest free financing works well if you can pay of the balance within the stipulated time frame. Interest rate charges can be as high as almost 30%.
Also, if you opt for financing then it will reflect on your credit report as a balance and this may lower your credit score. So, if you and your partner are looking to purchase home soon then think about this scenario. So, as we see, the amount which you should spend on an engagement ring totally depends on you. I just covered few angles we can look at things to ensure we do not attract any severe financial liabilities in the future wherein as a married couple you would have bigger financial responsibilities to take care off.
Image Courtesy: LJ Mears
Category: Personal Finance