How to Save for an Engagement Ring

When it comes to proposals, the engagement ring holds special significance, symbolizing your love, commitment, and the promise of a future together. However, finding the perfect ring without overspending can be tricky. 

Planning ahead is key to buying a ring and budgeting for a memorable proposal. Our guide will walk you through practical steps on how to save for an engagement ring, buy wedding rings, and ensure you can propose with confidence and financial peace of mind. 

Setting an engagement ring budget 

Determining your budget for an engagement ring is one of the first and most important steps in the buying process. Setting a realistic budget ensures you can purchase a beautiful ring without putting yourself in financial strain. 

Assess your financial situation 

Evaluate your income, monthly expenses, existing savings, and any outstanding debts. Understanding your overall financial health will help you set a practical and achievable budget for the engagement ring. 

Determine a realistic budget 

There's a common myth that you should spend two to three months' salary on an engagement ring. Instead, focus on what you can comfortably afford without compromising your financial stability. 

Remember to consider other upcoming expenses, such as wedding costs or future financial goals, and allocate a budget that balances these priorities. 

Prioritize your spending 

Once you have a general budget in mind, prioritize your spending within that range. Decide what aspects of the ring are most important to you and your partner. 

Whether it's the size of the diamond, the quality of the cut, or the type of metal for the band, knowing your priorities will help you make informed decisions and stay within your budget. 

Create a savings plan 

Chances are, you’ll need to set aside money over time to afford the engagement ring you (and your significant other) want. 

Open a dedicated savings account specifically for the ring and set up automatic transfers to contribute regularly. This disciplined approach will help you reach your goal without feeling overwhelmed. 

Explore financing options 

While saving up is the best approach, sometimes you may need a little extra help. For example, many jewelers offer interest-free or low-interest financing that allows you to spread the cost over several months. 

If you don’t qualify for in-store financing, you might consider a personal loan. Just be sure to read the terms carefully and ensure the payments fit within your overall budget. 

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How to save for an engagement ring 

For most of us, saving for an engagement ring requires discipline and strategic planning. Here are some practical steps to help you save efficiently and reach your goal: 

Cut unnecessary expenses 

Identify areas where you can reduce your spending. This might include dining out less frequently, cutting back on subscriptions, or finding more affordable alternatives for daily expenses. By making small adjustments, you can free up extra money to put towards your engagement ring fund. 

Automate your savings 

Set up automatic transfers from your checking account to your dedicated savings account. Even small, regular contributions can add up significantly over time. 

Automating your savings guarantees that a portion of your income is consistently allocated toward your goal without you having to think about it. 

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Utilize cashback and rewards programs 

Take advantage of cashback and rewards programs offered by credit cards and various retailers. For example, you might use a cashback credit card for your everyday purchases and allocate the rewards toward your engagement ring fund. 

Similarly, look for retailers that offer loyalty programs or discounts that can help you save more. 

Earn extra income 

Consider finding ways to earn extra income to boost your savings. This could include taking on a part-time job, freelancing, or selling unused items around your home. Any additional income can be directly added to your engagement ring savings, helping you reach your goal faster. 

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Avoid unnecessary debt 

While it might be tempting to finance the entire cost of the engagement ring, it’s important to avoid accumulating unnecessary debt — especially if you have a wedding and honeymoon to plan! 

Focus on saving as much as possible and consider financing only if it’s absolutely necessary. If you do opt for financing, make sure the payments fit within your budget. 

➢RELATED: How to Plan a Wedding on a Budget 

Buying wedding rings: Prioritize the Cs 

When buying a natural diamond engagement ring, you’ll need to understand the four Cs — cut, clarity, color, and carat. These factors determine the diamond’s quality and value, but not all of them need to be of the highest grade to get a beautiful ring. 

Scores in the good range indicate you’re a responsible borrower with an on-time payment history. 

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Cut. How a diamond is cut influences its sparkle and brilliance. Even when the other Cs are lower grade, a well-cut diamond will stand out. When you’re on a budget, prioritize the diamond’s cut above the other Cs to ensure your engagement ring shines brilliantly. 

Clarity. Clarity refers to the presence of flaws, known as inclusions and blemishes. While higher clarity grades are more expensive, many inclusions are microscopic and don’t affect the diamond’s appearance to the naked eye. As such, buying a diamond with slight inclusions can be a smart way to save. 

Color. Diamonds range from colorless to light yellow or brown. Colorless diamonds (grades D-F) are rare and expensive, but near-colorless diamonds (grades G-J) often appear equal to the untrained eye. Opting for a near-colorless diamond mounted in a nice setting can save money without sacrificing visual quality. 

Carat. Carat weight measures the size of a diamond. Naturally, larger diamonds are more expensive, but a well-cut diamond can appear larger than its actual weight. Even smaller diamonds mounted in a cluster setting give the illusion of a much larger center stone. 

By strategically prioritizing the four Cs, you can find a beautiful diamond that fits your budget and makes a lasting impression. 

Scores in the good range indicate you’re a responsible borrower with an on-time payment history.

Explore alternative gemstones 

While diamonds have long been the traditional choice for engagement rings, alternative gemstones have become increasingly popular. Choosing a non-diamond gemstone can be a unique and budget-friendly option without sacrificing beauty or significance. 

• Sapphires. Known for their rich blue color, sapphires symbolize loyalty and trust. They are durable and come in various colors, including pink, yellow, and green. 
• Emeralds. Prized for their vibrant green hue, emeralds symbolize love and rebirth. They are slightly softer than sapphires and diamonds but still suitable for engagement rings with proper care. 
• Rubies. With their deep red color, rubies represent passion and love. They are highly durable and nearly as hard as sapphires. 
• Moissanite. A popular diamond alternative due to its exceptional brilliance and affordability. It is durable and closely resembles diamonds but often costs less. 
• Aquamarine. With its serene blue color, aquamarine symbolizes tranquility and harmony. It is durable and offers a beautiful, unique choice for an engagement ring. 
• Morganite. This pink to peach-colored gemstone is associated with love and compassion. It is affordable and offers soft, romantic hues perfect for vintage designs. 
• Amethyst. Known for its striking purple color, amethyst symbolizes peace and stability. It is affordable and can be used in rings with proper care. 

When selecting an alternative gemstone, consider your significant other’s personal style, preferences, and lifestyle. Ensure the gemstone's durability aligns with the intended use and research its care requirements to maintain its beauty and longevity. 

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Where to buy a wedding ring 

Choosing where to buy your engagement ring or wedding ring set can affect your budget. Here are some options to consider: 

Online jewelers 

Online jewelry stores offer a vast selection of rings at competitive prices. They often have lower overhead costs compared to brick-and-mortar stores, allowing them to offer better deals. 

Additionally, some online jewelers offer customizable options, allowing you to design a unique ring. 

Brick-and-mortar jewelers 

Traditional jewelry stores provide a personal shopping experience where you can see and try on rings before making a purchase. This can be particularly helpful if you are unsure about ring styles or sizes. 

Building a relationship with a local jeweler can also be beneficial for future services such as resizing, cleaning, and maintenance. 

Antique shops 

For those seeking a ring with history and character, estate sales, vintage stores, and antique shops can be excellent options. 

Pre-owned rings can be more affordable than brand-new ones, and they often feature unique designs and craftsmanship that are hard to find in modern pieces. 

Big-box retailers 

Don’t discount stores like Costco, Walmart, and Macy’s. Big-box retailers offer a range of engagement and wedding rings at various price points. 

While their selection might not be as extensive as specialized jewelers, they often provide good value and convenience. These retailers may also have return policies and warranties that add extra security to your purchase. 

Is ‘Buy Now Pay Later’ a good idea for wedding rings? 

Buy Now Pay Later (BNPL) has gained popularity as a way to make significant purchases more manageable. As with any financing options, however, it's important to weigh the pros and cons before deciding if it's the right choice for your engagement and wedding ring purchase. 

Pros of Buy Now Pay Later 

• Immediate possession. BNPL allows you to take the ring home immediately without waiting until you’ve saved the full amount. 
• Flexible payments. Many BNPL plans offer flexible payment schedules, such as monthly installments, which can make the cost easier to manage within your budget. 
• Low or no interest. Some BNPL programs provide interest-free periods, making it a cost-effective way to finance your purchase if you can pay off the balance within the promotional period. 
• Building credit. Successfully managing BNPL payments can help improve your credit score if the provider reports to credit bureaus. 

Cons of Buy Now Pay Later 

• Interest and fees. If you don’t pay off the balance within the interest-free period, you could face high interest rates and fees, increasing the overall cost of the ring. 
• Debt accumulation. BNPL can encourage spending beyond your means, leading to debt accumulation. It's essential to ensure that the payments fit comfortably within your budget. 
• Impact on credit score. Missed or late payments can negatively impact your credit score, making it harder to obtain credit in the future. 
• Limited options. Not all jewelers offer BNPL options, potentially limiting your choice of retailers. 

Alternatives to Buy Now Pay Later 

• Traditional financing. Look for jewelers that offer traditional financing options with low-interest rates or promotional periods. Compare these with BNPL to find the best deal. 
• Saving up. The most cost-effective way to buy an engagement ring is to save up and pay in full. This approach avoids interest and fees, allowing you to stay within your budget. 
• Credit cards. Some credit cards offer 0% introductory APR on purchases for a specified period. If used responsibly, this can be a good alternative to BNPL. 
• Personal loans. If you prefer a more structured payment plan, consider taking out a personal loan with a fixed interest rate and repayment term. 

➢RELATED: Personal Loans vs. Credit Cards

Create a secure future together 

Successfully managing your finances is essential in any committed relationship. While you may want to keep your proposal plans under wraps, make it a point to discuss your finances and goals so you can effectively plan for significant expenses, including an engagement ring, wedding, honeymoon, and beyond. 

➢RELATED: 7 Financial Questions to Ask Before Marriage

Engagement ring FAQs 

How long should I save for an engagement ring? 

Save for at least 6 to 12 months to comfortably afford the ring without financial strain. 

What percentage of my income should I spend on an engagement ring? 

Spend what you can afford without compromising your financial stability. 

Are lab-grown diamonds a good option? 

Yes, they are more affordable and environmentally friendly, with the same physical and chemical properties as natural diamonds. 

How can I ensure I'm getting a good deal on a wedding ring? 

Compare prices, check certifications, read reviews, and buy from reputable jewelers. 

What are some hidden costs when buying an engagement ring? 

Consider taxes, insurance, resizing, and maintenance costs.