When it comes to engagement rings, there's a lot of confusion and uncertainty around how much you should spend. The traditional "rule" is that you should spend 2-3 months' salary on the ring, but is that really necessary? And is that even a good rule of thumb anymore?
At Jolics, our jewelry experts have helped countless couples navigate the engagement ring buying process. In this blog post, we'll break down everything you need to know about how much to spend on an engagement ring in 2024.
The History of the 2-3 Months' Salary "Rule"
The idea that you should spend 2-3 months' salary on an engagement ring originated in the 1930s. It was part of a highly successful marketing campaign by De Beers, the famous diamond company. Prior to this campaign, engagement rings were much more modest, often costing just a few weeks' salary.
De Beers wanted to increase the perceived value of diamonds and convince men that they needed to spend a significant amount of money to properly propose. The 2-3 months' salary "rule" stuck, and it's become ingrained in our cultural consciousness.
However, many experts now argue that this rule is outdated and unrealistic for most couples. The average cost of an engagement ring in the US is around $6,000, which is a far cry from 2-3 months' salary for most people.
Factors to Consider When Budgeting for an Engagement Ring
So if the 2-3 months' salary rule isn't the best guideline, how much should you actually spend on an engagement ring? Here are some key factors to consider:
Your Financial Situation
The most important factor is your own financial situation. You don't want to go into debt or strain your budget just to buy an expensive ring. Consider your income, savings, and other financial obligations when setting your engagement ring budget.
Many financial experts recommend spending no more than 5-10% of your annual income on an engagement ring. This ensures that the purchase won't put a significant dent in your finances.
Her Personal Style and Preferences
Another important factor is your partner's personal style and preferences. Some women prefer a simple, classic solitaire ring, while others may want something more elaborate or unique. Take the time to understand her style and what kind of ring she would love.
You can also consider her existing jewelry collection and choose a ring that will complement the pieces she already owns. This shows that you've put thought and care into the selection.
The 4 Cs of Diamonds
If you're buying a diamond engagement ring, you'll need to understand the 4 Cs: cut, color, clarity, and carat. These factors determine the quality and value of the diamond, and they can significantly impact the price.
Generally, you'll want to prioritize cut quality, as this has the biggest impact on a diamond's sparkle and brilliance. You can then balance the other 3 Cs to find the best diamond within your budget.
Additional Features and Customization
Beyond the diamond itself, there are other features that can affect the cost of an engagement ring. Things like the metal type (e.g. gold, platinum), any additional stones or accents, and custom design work can all add to the price tag.
If you're open to some customization, you may be able to get a more unique and meaningful ring within your budget.
How Much Should You Spend?
Ultimately, there's no one-size-fits-all answer to how much you should spend on an engagement ring. The "right" amount is the one that fits your financial situation and your partner's preferences.
Many couples today are spending between $3,000 and $7,000 on engagement rings. This range allows for a beautiful, high-quality ring without breaking the bank.
Of course, you can certainly spend more or less depending on your circumstances. The most important thing is that you choose a ring that reflects your love and commitment, not just the price tag.
At Jolics, our jewelry experts are here to help you find the perfect engagement ring within your budget. We offer a wide selection of premium-quality rings, as well as custom design services to create a truly unique piece.
