How to Budget for a Diamond Engagement or Wedding Ring
(A Short Guide)
22 Nov 2021 | 10 min read
If you are planning to get married or engaged this year, then the next question would usually be what ring you should get for your fiancé. In this case, a diamond ring would be the first thing that comes to mind. However, this also opens a can of worms about acquiring the ring itself. How big a diamond should I get? How many carats should the diamond be?
Perhaps the most important question would be: How much should I spend on a diamond ring?
That’s what we will be helping you with today. This article will serve as a short guide for you about the typical cost of rings and how much you should spend on an engagement or wedding ring.
What affects the price of a Diamond Ring?
The first thing to keep in mind while planning to buy a diamond ring is definitely your budget. When looking for a diamond ring, you will come across many different shapes and sizes of diamonds available in the market. There are also the specifications of the diamond to consider such as the diamond cut, colour, clarity and carat weight. The price of the diamond significantly depends on all these factors.
When looking at a diamond ring as a whole (not just the diamond), the design and material of the ring play a part in the total price as well. Opting for plain and simple designs will result in a more affordable price while intricate designs tend to demand a heftier sum. The choice of precious metals like silver or gold as the ring material and its quality grade will affect the price accordingly.
With all these in mind, how do you set an appropriate budget for yourself?
How much should I set aside to buy a Diamond Ring?
You might have heard of this common (and perhaps outdated) saying for men buying a diamond ring:
“You should spend about two months’ salary on buying a diamond ring. For example, if your monthly salary is $5000 then you must get a diamond ring for $10,000.”
However, our take on it is that you do not have to follow this saying as it is not a hard-set rule! This may have just been a rough guideline for men who were discussing and looking to buy a diamond ring, thus coming up with the estimated budget of spending 2–3 months of their salary. But not everyone has to follow it.
The best thing to do would be to have a look at your current financial circumstances before deciding on how much to spend on a ring. Some of us may be in more fortunate positions, whereas some of us may have more responsibilities and other factors to consider. And that is perfectly fine. Buying a diamond ring for your loved one shouldn’t have to be a stressful decision to make. It should be an exciting and pleasant experience. It is also alright to save up little by little every month until you finally reach your goal instead of splurging your monthly salary in one go. Make sure that the price of the ring is a comfortable amount for both you and your partner.
What is the average cost of a Diamond Ring?
A public survey by Bride’s American Wedding study revealed that people paid an average of $3756 USD on buying diamond rings for their fiancée in 2020, which is less than the average amount spent of $7826 USD in 2018.
The cost of a diamond ring will actually depend on the couple’s preferences. Some people may prefer minimalistic designs which cost less, while some may prefer extravagant designs with many various diamonds set into the ring. The mark-up rate by retailers is another significant factor that affects the overall cost. Buying from a well-known brand means paying for the brand name as well and it is no cheap amount. The same diamond ring from a local jeweler or trusted online store would usually have a smaller mark-up rate and not cost as much.
Our advice? Discuss with your partner and make a choice that everyone is comfortable with!
When it comes to making our loved ones happy, perhaps we would be more than willing to spend as much as we can. But do bear in mind that we can make them happy and still save money or not spend a bomb at the same time. Sit your partner down and talk to them. What preferences do they have? What amount would be a comfortable one without straining your financial resources? Do you want to spend less on the ring and use the money to go for a honeymoon at a desired destination instead?
If you are going to spend a lifetime making decisions together, perhaps this is a good place to start. Whatever the choice, we would like to emphasize again that it should be a choice that both parties are happy and comfortable with. After all, your happiness is really the most important factor here. And if you are looking for your ideal diamond at an affordable price, you know where to find us.