There are many wedding customs that couples are expected to follow since it is considered good etiquette. But there are plenty of rule-breakers out there who believe that ancient standards have no place in today’s discussions about money and marriage.
One of the most common questions is how much to spend on an engagement ring. There’s the antiquated “three-month rule,” which contends that spending one-fourth of your yearly income on a ring for your fiancée is the greatest way to express your love.
But, before you spend three months’ worth of your hard-earned money on a diamond, keep in mind that this guideline began as a marketing ploy to increase diamond sales during difficult economic times, according to the wedding website The Knot.


To put that figure into context, according to the three-month guideline, someone earning $50,000 per year should spend $12,500 on an engagement ring.

If a three-month budget sounds like too much of a stretch for your lifestyle, you’re not alone. According to a 2019 study conducted by The Knot, the average engagement ring costs approximately $5,900, with a sizable proportion of survey respondents (10 percent) spending less than $1,000. Couples reported spending an average of $3,756 on an engagement ring in a 2020 Brides’ American Wedding Study, which is more than $2,000 less than the average 2019 price tag above.

There is no one correct answer, and no appropriate amount to spend on an engagement ring, as there is with everything else in love and marriage. The basic answer is that you should spend precisely what you can afford and desire to spend.

It may be more romantic to purchase a small ring this year and use the excess money to establish a joint savings account that will set you on track toward the shared future you want. A shared nest fund may seem more practical than romantic, but it may help you kick-start the life of your dreams, which may be more essential in the long run.

However, if purchasing a costly engagement ring is critical, there are methods to finance it if you don’t have the cash upfront. Making a modest monthly payment may be the most feasible option for some. Simply ensure that you can afford to make the monthly payments for the length of the financing term.

Interest rates

When looking for low- or no-interest financing, choose a credit card with a 0% APR and a nice welcome bonus. You may then pay over time without incurring interest costs, while also optimizing your savings by earning cash back or rewards points to spend on a honeymoon or to decorate your first home as a married couple.

If you don’t qualify for a 0% APR credit card, you may get a store card from your jeweler. Despite the fact that store cards have a few hidden dangers, they often give customers a unique 0% interest term. If you take this way, keep an eye out for deferred interest and/or sign-up fees, and make sure you have a clear debt payback plan.

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