How Much Should I Spend on a Wedding Ring?

When you think about spending some money on an engagement ring, there are a lot of myths and suggestions on how much you should spend on one. People say that you should put down two months’ of salary, but this is just something people say. The diamond industry wants you to spend a lot of money on a diamond, but you don’t have to buy a big diamond to get a beautiful piece of jewelry. There are rings for all budgets, from just $100 to $100,000. The sky’s the limit. Some people want rings for sentimental value, others want big diamonds and expensive stones. 

Price vs. Value

Those who go solely for price can miss out on a few things. Rings can be designed with birthstones in mind, with sentimental value inspired by your relationship or the person. While you shouldn’t go for the cheapest ring, you can find something perfect for your partner. Buying an engagement ring is never a small purchase, it could be one of the biggest in your life. A study from TD Bank found that the average couple spent $2,016 on engagement rings. Those who spent $2,500 to $5,000 made up 17 percent of the people polled. Meanwhile just 7 percent of people spent $10,000 or above. If you are having trouble affording a ring, you could always go into jewelry finance. 

Cash vs. Finance

Of course paying cash is always the best choice. This way you will have money on interest to help you avoid late payment fees or other penalties. It will also prohibit you from buying a ring that you can’t afford. However, for some paying in cash just isn’t an option. If this is you, you can take a look at your finance options. 

There are a few options when financing your engagement ring. One way to do so is to finance it through the engagement ring through the jewelry store itself. Before you approach a store about this, you should make sure to do your research and find the things that you need to know before you pull the trigger. 

You should look for any promotional deals you can get your hands on. There will likely be low interest rates that can potentially save you a lot of money if you are going to finance a ring. Regular interest rates are more expensive, so you should make sure that you can afford the APR in case you don’t pay it off before the promotional period ends. Be careful of the hidden charges and fees that are included in the finance options. 

Credit Card

Another way to finance an engagement ring is to simply put it on a credit card. You should make sure that the APR is low. You’ll also want the lowest percentage possible to match up with the time frame that you can pay him back. In order to qualify for a low or zero APR credit card. Take some time to build up your credit score and make sure that the interest rate is as low as possible before you buy the engagement ring. 

Personal Loans

Finally, taking out a personal loan is a method to buy your partner an engagement ring. Again, the APR should be as low as possible and your credit score should be high. If you have a decent rating, you will be able to get the best interest rate possible. According to the site MoneyPug, a platform to find short term loans, the average APR on a credit card is 16 percent, but the rate of personal loans should be under 10 percent. The average loan is anywhere from 12 to 60 months, but your terms should be as short as possible. 

When thinking about buying an engagement ring for your partner, there are many options on how to pay for it. Of course it is always a good idea to pay in cash, but if you need to finance a ring you have a few options. The key is making sure your interest rate is low and your terms are as short as possible. Still, you will need to pay for it in good time. When you find the right ring, make sure you can afford it. The memory and the ring itself will likely last for decades. 

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