General Rule: You should spend at least 2 months salary on the engagement ring. If, for example, you are making $60,000 per year, you should spend $10,000 on the engagement ring.
After over 135 years in the industry, we can tell you with confidence that the "two month's salary" rule is a myth. It's started as a marketing ploy that came from the iconic De Beers 1930s campaign to generate buzz around diamonds.
It's known as the "three months' salary" rule, and it implies that a buyer should put three months of their salary toward a sparkler for their future spouse. For context, The Knot 2021 Jewelry and Engagement study found that the average cost of an engagement ring in the US is $6,000.
How Much Should an Engagement Ring Cost? A one carat engagement ring typically costs around $5,500, but most couples spend over $6,000—and 7 percent spend over $10,000.
According to a 2020 Australian wedding industry report, the average couple in Australia is spending $5,367 on their engagement ring.
General Rule: You should spend at least 2 months salary on the engagement ring. If, for example, you are making $60,000 per year, you should spend $10,000 on the engagement ring.
A $20,000 engagement ring budget is far above the median amount spent on a diamond ring, which is around $3,000 – $5,000. When we discuss the average engagement ring cost, we note that people spending 20k are significantly above the mean.
While $6,000 is the national average cost of a ring, the spend per couple varies. Our study found that roughly one-third of all respondents are spending between $1,000 to $4,000 on their engagement ring.
Is $5,000 Enough for an Engagement Ring? Yes. A budget of $5,000 is absolutely enough to buy a beautiful engagement ring that your fiancé-to-be will love. For example, this stunning 1.2 carat, K color, VVS1 round diamond set in a beautiful 18K yellow gold solitaire ring from James Allen is $4,860.
Your Ready to Propose!
If you're going with a pre-designed ring, make sure to purchase that at least one month before your proposal date, while two months minimum should be allotted for a custom ring.
“Wedding industry advertising has fueled the norm that spending large amounts on the engagement ring and wedding is an indication of commitment or is helpful for a marriage to be successful,” says Mialon. “In either case, the general message is that wedding spending and marriage duration are positively correlated.”
Do You Still Wear Your Engagement Ring After You Get Married? After your wedding ceremony, you will continue to wear your engagement ring along with your wedding band. So, yes. Feel free to stack on the jewels and show that stunner off!
Well-qualified borrowers may get a low interest rate on a personal loan that can be used to purchase an engagement ring. These loans provide a lump sum of money that you repay in monthly installments. Annual percentage rates on personal loans start around 6%, and repayment terms are usually two to seven years.
Can I Wear My Engagement Ring to Bed? Put simply—no, you shouldn't wear your engagement ring to bed. Sleeping with your ring on can put pressure on the band and bend the shank and prongs out of shape. Your ring may also catch on your blankets, which can damage the prongs and pull out diamonds.
Jewelry store financing
It's an installment loan wherein you get to walk out of the store, ring in hand, and make incremental monthly payments toward the loan balance, plus interest. Generally, jewelry financing offers more flexible credit requirements compared to borrowing a loan from a traditional bank.
While some people might prefer to pay for an engagement ring all at once, that's not an option for everyone planning to pop the question. With a reasonable budget and pay-off plan, financing an engagement ring can be a great option for those who can't or don't want to make a large one-time payment.
The Salary Rule says you should spend two to three months' salary on the engagement ring. For example, if you earn $48,000 per year, you should spend $8,000 to $12,000 on the ring. If you earn $60,000 per year, you should spend $10,000 to $15,000.
With natural diamonds, you can get approximately a 1 to 1.25-carat diamond for $3,000. If you choose a lab-grown diamond instead, you can get approximately a 2.5 to 3 carat stone. Just remember that if your budget is $3,000 total, you will need to opt for a smaller diamond in order to afford the setting, too.
Affordable engagement rings under $500 or even $200 should be considered a sign of critical and analytical thinking which is crucial to making the marriage union a success. Are you looking to shop for affordable but stunning, high-quality engagement rings?
Salary Rule: You should spend 2 to 3 months salary on the engagement ring. For example, if you earn $48,000 per year, you should spend $8,000 to $12,000 on the ring. If you earn $60,000 per year, you should spend $10,000 to $15,000.
Average wedding band cost for men
The average cost of a wedding band for men is about $510, according to The Knot. The price can vary significantly based on the metal used. Titanium is the least expensive, while platinum costs the most.
Many of today's couples choose to wear engagement rings to signify their love and mutual commitment, regardless of each partner's sex or gender. Women and men wear engagement rings. Whether a person chooses to wear an engagement ring can be a matter of personal preference or a decision made jointly by the couple.
According to data published by Rapaport, the average amount spent on an engagement ring is $6,000, with around a third of all couples spending between $1,000 and $4,000. So, with a $25,000 engagement ring budget, you'll be able to afford something far above average.
The most traditional way to go about this would be the bride pays for the groom's wedding ring plus a gift and the groom pays for the engagement ring and matching wedding band for the bride.
According to a 2022 study from Credit Donkey, most couples reported wanting to spend between $1,000 and $5,000, though the average cost of an engagement ring was around $5,225.