Decided that you’re ready to pop the question? Before you start looking for the perfect ring, you’ll need to work out your budget and how much you’re looking to spend to make your dreams a reality.
How much you should spend on an engagement ring will ultimately come down to how much you can afford to spend, and the type of ring you’re looking for. Does your future bride or groom prefer platinum or gold? Do they have a diamond cut in mind? While finding the right ring is important, the focus should be on what an engagement ring represents, not the cost of it.
Our guide should help you work out how much you should spend on preparing for your engagement, and what you’ll need to consider to find the perfect diamond for your partner.
What is the average cost of an engagement ring?
Diamonds are known to be luxurious and sought after, so tend to be something you’ll need to save or budget for. After all, an engagement ring is a life-long investment that your partner will hopefully wear for the rest of their life. The cost of an engagement ring varies depending on the cut of the diamond, color of the diamond, clarity of the diamond and whether you’re buying platinum or gold, and even how much it sparkles.
In 2023, the average cost of an engagement ring in the USA was $5,500 (according to the Knot 2023 Jewelry and Engagement Study).
Whereas, in the UK the national average cost of an engagement ring is £1865, which equates to around $2,407.
For those in France, the average budget people spend on an engagement ring is around €697, which equates to around $752.87.
But before you start thinking about how you’re going to save the money, it’s important to set your own budget and shop around. Engagement rings can vary dramatically in price, and you shouldn’t aim for a particular price point to wow your partner if you really can’t afford it.
You can choose to propose with any ring you like – perhaps you’ve been gifted a ring by a family member that would offer a sentimental touch. It’s also worth keeping your partner’s preferences in mind – do they prefer more simplistic rings which are naturally cheaper than those with a larger diamond?
The most important thing is that you set a budget before you start shopping around, to avoid unnecessary pressure and a strain on your finances.
Is the ‘three months’ salary’ rule true?
You’ve likely heard of the ‘three months’ salary’ rule when it comes to proposing – the idea that you need to spend between one to three months of your salary on an engagement ring to propose ‘properly’.
This ‘rule’ originated from a marketing campaign that ran in the 1930s by the De Beers diamond company. The campaign promoted the idea that a man should spend a month’s salary on his wife’s ring to prove true love and commitment. This rule and societal expectation later grew to two months’ salary in the 1980s, with the ‘three months’ salary’ rule being known today.
It’s natural to feel some societal pressure when it comes to choosing a ring for your significant other that feels like ‘enough’, both in its appearance and value. In reality, you should only spend what you feel comfortable with and can afford – the value of the ring shouldn’t equate to how strongly you feel towards your partner.
What to consider when choosing an engagement ring
Not sure where to start with choosing an engagement ring? Here are some considerations to help you with your ring search:
Set a budget
A good place to start is to set a budget early on – both to narrow down your choices of rings and minimize potential money worries so you know what you have to work with. If you’re unsure of how much to spend, it may be worth looking at your monthly outgoings and working out how much you can afford to set aside each month to save for the ring.
Make sure to keep your savings goal realistic and try not to give in to societal pressures around the three month’s salary rule. Remember that the meaning behind the ring and proposal is much more important than the cost and value of it.
Taking out insurance
Insurance is designed to protect against the unexpected – so if you’re purchasing a high-value item like an engagement ring, it may be worth you insuring it. Insurance can cover you for things like accidentally losing the ring, the ring being stolen and accidental damage, so if the worst happens, you won’t need to pay out for repairs or worse still, a replacement ring.
Make sure that you always insure the engagement ring for its current market value, especially if you’re planning to wait a while before you get married. This is because gold, diamonds and other stones usually increase in value over time.
Platinum or gold
The choice between platinum or gold will depend on both your partner’s preference and your budget. There is no right answer as to whether platinum is better than gold – both are used to make stunning diamond rings, but they do come with their differences.
In terms of strength, platinum is a denser metal than gold so it’s less likely to break long term. But while it may be stronger than gold, platinum is also softer and may be more likely to get scratched by accident.
While they’re almost identical in appearance other than their color, platinum is usually more expensive than gold as it’s rarer metal. So, if you’re torn between the two and looking to save money, gold may suit you better. But if you’re looking for something durable that is less likely to tarnish, a platinum ring may be a more sustainable option.
Conflict-free diamonds
When deciding on the right engagement ring, you’ll need to consider if conflict-free diamonds are something that is important to you. Conflict-free diamonds, otherwise known as ‘ethical diamonds’, means that the diamonds haven’t originated from or been mined from areas controlled by forces at war.
If getting a conflict-free diamond ring is important to you, you’ll be pleased to know here at Diamond Mansion we only sell conflict-free diamonds. We take conflict-free diamonds very seriously by adhering to strict guidelines set by the Kimberley Process. The Kimberley Process was established in 2003 to prevent ‘conflict diamonds’ from entering the market. This means all diamonds entering the United States must be accompanied by a government-issued Kimberley Process Certificate.
Thoughtful doesn’t have to mean expensive
It’s natural to feel pressure around buying an expensive ring, but it’s important to remember that the size of the diamond isn’t supposed to be a representation of how much you love your partner. What matters most is the thought that goes into choosing a ring that is right for them.
What if I can’t afford an engagement ring?
An engagement ring is often a big investment and whatever your situation, it can feel overwhelming to find a way to cover the cost of it.
Here are some ways to help you afford an engagement ring:
- Look at your outgoings: You may be paying for things on a monthly basis that you aren’t using, like gym memberships or subscriptions. You may find yourself gaining some extra money quicker than you think by cutting back on what you don’t need or use!
- Set up a savings account: Putting aside money each month that you can’t access can help you meet your savings goal and resist any temptation to overspend
- Pay in instalments: Here at Diamond Mansion, we offer 0% APR finance to help you spread the cost of your jewelry into instalments to help make your purchase feel more affordable, rather than paying for it all upfront.
Should You Only Consider a Diamond Engagement Ring?
When planning how much to spend on an engagement ring, you might wonder if a diamond is the only option. As of 2023, diamonds still lead in popularity, with 85% of couples choosing them, according to a survey by The Knot. Also, diamond solitaires have become more popular, showing a trend towards classic and simple designs. But it’s worth noting that tastes are changing. Moissanite and Lab Grown Diamonds, a more affordable alternative, is growing in popularity, especially among younger couples. According to the same survey, in 2023, about 30% of those who chose non-diamond stones went for moissanite, which is a 10% increase since 2019. This shift shows that more couples are considering other options that are not only budget-friendly but also align with values like sustainability and ethical choices. So, if you’re deciding on an engagement ring, think about whether a diamond truly suits your needs and values, or if another gemstone might be a better fit for your lifestyle and budget. This change in trends invites you to consider all options, ensuring your ring truly symbolizes your unique relationship.
Retail vs. Resale Value
In order to determine the retail value of your diamond, you can compare your diamond with other stones that will have similar values for the 4 C’s. However, it is important to consider that the resale value of your stone will be much less than the retail value.
To estimate the resale value, one should consider that resale will be approximately 20-60% of the retail value of similar diamonds. Resale value is much less because retailers typically buy diamonds at wholesale prices, and thus, there is no reason to purchase a diamond with comparable value at a higher price from an individual than purchasing a similar stone from a wholesaler at a lower price.
Upgrading your ring
If you want you can also upgrade your ring in the future, perhaps when you reach a relationship milestone or you have a bigger budget than you did when making your initial purchase. Here at Diamond Mansion, we offer lifetime upgrades on all natural GIA-certified diamonds that were originally purchased from us. This means, if you bought your engagement ring from us, you can upgrade your center stone in the future.
- You will receive credit equal to 100% of the original price toward the purchase of a new diamond which must be at least twice the price of your original diamond.
- The credit value will be based solely on the original value of the center diamond
For more information on how you can upgrade your ring, take a look at our FAQs.
Ready to take that next step in your love story and find your dream engagement ring today?