Engagements rings are expensive, but set a budget and stick to it. While the average price price of a ring is $5,500 in the US. Diamond ring prices vary widly from less than $1,000 to upwards of $20,000. There are many ways to reduce the expense and select the perfect ring.
When you take your relationship to the next stage, ensure you do it right with a stunning ring and a romantic proposal. Once it comes to picking an engagement ring and determining how much you will spend on it, you will realize that doing some research beforehand will help.
We are here to guide you in this process. We have been in your shoes and get it: you want your girlfriend to say “yes” without your bank account taking a total walloping.
We’ll go over the average cost of an engagement ring, look at how much you should consider spending on an engagement ring, and point out some things to think about when you are coming up with a budget and choosing a ring for your girlfriend.
The Average Cost of an Engagement Ring
Currently, $5,500 is the average cost of an engagement ring in the United States.
While there is no exact average price for an engagement ring, most surveys on engagement ring buyers reveal that rings cost between $5,000 and $7,500.
There are many things to consider when determining how much you should invest in an engagement ring.
This does not imply that an engagement ring must cost $5,000 or more. High spenders, such as those who pay $20,000 or more for an engagement ring, are pushing the average spending on an engagement ring upwards. According to the survey, one-fourth of all participants intend to spend between $1,000 and $3,000 on an engagement ring. In reality, 11% of ring buyers spend less than $1,000. In terms of how many people are spending on an engagement ring, there is a divide by generation.
Millennials pay an average of $3,000 on an engagement ring, despite the fact that the average cost is over $5,000. Men getting proposed later in life tend to spend more.
Based on a study done by statista.com, the average price of engagement rings also varies by location in the United States. For example, the Mid-Atlantic seems to have had the highest average spending in 2020, at $7,600. Northeasterners were right behind them, with engagement rings costing an average of $6,000. The average amount spent in places like the Midwest, Southwest, and Western was roughly in line with the national average spend, at $5,400, $5,200 and $5,400 respectively. The average cost of engagement rings was the least in the Southwest.
Forget The “Two Month’s Salary” Rule
You have probably heard that the only way to figure out how much to spend on an engagement ring is to look at your income. You may have also heard that you ought to spend two months of your earnings on your girlfriend’s engagement ring. This rule, dubbed the “two-month rule,” started as a clever marketing strategy by the diamond industry.
De Beers, the world’s largest diamond company, launched targeted marketing campaigns in the 1980s, including one that suggested you should invest a total of two months’ gross income (i.e. pre-tax) on an engagement ring. These advertisements aimed to increase the regular person’s spending on diamonds, thus growing the revenue of the company. The whole campaign, as well as the two-month rule it introduced, was designed solely to increase diamond sales. When looking for a diamond ring, you should easily disregard this old rule.
Spend what makes you feel comfortable. Don’t break the bank. Get something nice that does the job.
Engagement ring calculators are another way people determine how much to spend on a ring. By collecting data about your salary, debt-to-asset ratio, and lifestyle, engagement ring calculators aim to assist you in determining how much to allocate to an engagement ring. If you want to use an engagement ring calculator to figure out a rough budget, go ahead, just stay away from the gimmicky ones.
Determining Your Engagement Ring Budget
Anyone wanting to buy an engagement ring should first create a budget. This will inform all of your future choices, and it is crucial to know how much money you are looking to invest. Consider your goals. Are you on the lookout for a high-end diamond? Are you prepared to compromise on quality so as to increase the size of the diamond? Do you want a plain band that will be less expensive, or one with a handful of diamonds which will cost more? Once you start thinking of a budget for an engagement ring, consider the following factors:
Your girlfriend’s expectations
An engagement ring symbolizes your love and loyalty, as well as commitment to the future. It’s true that the ring you offer to your girlfriend matters. Ever since they were children, almost all women have fantasized about their engagement ring, proposal, and wedding. It’s critical to choose a ring that satisfies their expectations, guaranteeing that your magical moment is nothing short of amazing.
If you mess this up, you won’t be happy. And neither will she. There are plenty of times in life to cut corners – but the engagement ring is not one of them.
Regardless of the cost, your intention is to buy a ring that your partner will adore. If you want to keep it a surprise, you could ask family or friends for advice and if not, you can ask your partner directly for ring suggestions. To help you pick a ring, think about her hobbies, style, and overall lifestyle.
Your financial position
Keep in mind that you are not only arranging a lovely engagement, but also a wedding and then a future with the love of our life. You’ll want to consider how much you can afford in order to put yourself in the best financial spot for your marriage. You want to avoid getting into a huge amount of debt in order to buy an engagement ring.
Calculate how much you should invest in an engagement ring under your budget. You would like to be able to buy a ring without having to take out a loan. If you have to borrow more money or use a credit card, make sure you’re in a position to pay it back within a few months. If you are looking to save some money, you can purchase a loose stone from a diamond wholesaler then have it placed in a setting by a jewelry designer.
Meaningfulness of the ring
An engagement ring is a token of devotion and dedication. It’s customary to give up items you’d like to acquire in order to purchase a ring. However, going through years of debt only to have the fanciest ring in the market is not a good idea.
A meaningful ring that appeals to your girlfriend’s unique personality can mean a lot far more than the largest most expensive ring you can buy. Maybe your spouse would even prefer an heirloom to a ring, or maybe they would like to go against the grain and forgo the traditional diamond entirely and get a lovely alternative engagement ring. Focus on getting a ring that is meaningful to your partner and fits her lifestyle.
If your partner is active (cooks, plays sports, plays instruments, or uses her fingers for work) index on a more durable ring and stone.
Financing or Borrowing Money For An Engagement Ring
If you are curious about engagement ring financing, here is some guidance.
For something like a diamond, it’s best to pay cash. But, if you’re short on cash and need to pop the question, you can consider financing the ring Here are the two best ways to finance an engagement ring:
- Jewelry store financing: Jewelry stores offer financing, which can be okay and even great if you get 0% financing. But watch out for terms such missing a payment or what happens if you do not pay off the ring before the promotional APR expires.
- Use a credit card: Credit cards are the most convenient way to make large purchases and pay them off over time, but they can be very expensive. They have high interest rates and let borrowers make small minimum payments that increases the length of time it takes you to pay off the debt while increases the interest you’ll pay. Look for cards with 0% introductory rates if you use a credit card to make a large purchase (and enjoy the points!)
How To Save Money On An Engagement Ring
Our favorite recommendation for saving money on an engagement ring is to just shop online.
You can save as much as 50% by buying engagement rings online from reputable online jewelers. If you can find a respected online jewelry store, such as James Allen, you can actually save significantly.
Don’t Forget About The Wedding Band
Although the engagement ring is usually the most expensive piece of jewelry, wedding rings are also a budgeting consideration. According to research by The Knot, a female wedding band had an average cost of $900 in 2020. A men’s wedding band, on the other hand, cost an average of $500. If you’re shopping with your partner, set aside $1,000 at the minimum for simple bands that will still look good.
When choosing the kind of wedding band you want, you should think about your lifestyle. It is a ring that will be on your finger day after day, and some metals will hold up better than others. If you want your wedding band to match the engagement ring perfectly, you’ll have to pay more for it since you may have to get a custom design for it. You can get a wedding ring that complements your engagement ring at a lower cost if you would be open to moving away from the ideal match look. At the end of the day, you shouldn’t go broke trying to get the most expensive ring on the market.