You should spend two to three months' worth of your salary on an engagement ring... Right? This age-old adage may no longer hold true considering that the average US engagement ring cost is around $4,000.
Yet, that is just an average. Some couples spend much less. Meanwhile, other couples spend significantly more than $4,000 buying an engagement ring.
Are you or your partner getting ready to pop the question? If so, you may wonder how to determine your engagement ring budget. Here are the top factors to consider when doing just that.
Most people do not want to finance an engagement ring. If that sounds like you, consider how much money you can spare without putting yourself in debt. Calculate how much of your monthly income is left over after expenditures.
For example, say you bring in $5,000 per month. You pay $1,000 in rent, a $500 car note, and $1,000 in miscellaneous expenses and debt. That means you would have $2,500 each month to put toward the ring.
Also, make sure you consider your savings. We do not recommend tapping into your 401k or investment portfolio. But a few thousand dollars in savings is a great way to afford a pricier engagement ring.
Make sure to take your partner's opinion into account when shopping for rings. And by that, we mean more than just their opinion on engagement ring styles. You should also talk to him or her about your budget.
A recent Credit Donkey study found that 29% of couples spend between $2,000 and $5,000 on an engagement ring. 19% of couples spent less than $1,000, and 9% spent more than $10,000.
If you decide to take on debt for the purchase, your partner should have a say. After all, you will share the debt once you say, 'I do.' So make a decision that both of you feel good about financially.
So, say you do decide to finance your engagement ring purchase. Are you planning on making any big purchases in the near future? If so, factor these into the amount you plan to spend.
One of the reasons we do not recommend financing is that you will pay more on the total cost of the ring. Financing comes with added interest fees. These fees can really start to pile up, especially as term lengths increase.
Ideally, you want to be finished with the ring repayment before your big purchases come up. Additionally, consider an interest-free option to avoid paying more in the long term
Spending a lot of money when buying an engagement ring is no longer a requirement. Consider your disposable income, your partner's opinion, and any plans for future purchases when coming up with your unique budget.
Are you looking for the best engagement rings in Largo, FL? Johnston Jewelers is a family-owned jewelry store that has served the Tampa Bay Area for over 50 years. Come visit our store to find the ring of your dreams!