How much should you spend on an Engagement Ring?

This summer, it’s estimated that more than 500,000 men in the United States will pop “the question”, which means that summer time is engagement ring time.

Many men will be wondering, how much should they save for an engagement ring? Traditionally, DeBeers Diamond Company suggested that a groom should plan on spending at least three months’ of his annual salary. Yet the question remains, how valid is this ideal of spending three month’s salary given the difficulties in the world economies today and closer to home, our still sluggish economy?

At a time when the unemployment rate is close to double digits and the household savings rate is in single digits, not everyone will feel comfortable spending 25 percent of their annual income on a ring.

Still, there is the ideal that 3 months salary is the target, but there are a few things to remember when making this decision. First, it’s not like an automobile that you will drive for a few years and then trade or sell for a newer model, nor is it even like a condominium or home that you may decide to sell and move for what ever personal reasons that you may have.

This is a purchase that will last a very long time, and will be enjoyed for a very long time. My wife still gets compliments on her engagement ring, and she has worn it every day since the day she put it on her finger, 34 years ago!! Remarkably, this is not an unusual response that I often hear from our friends and clients about their rings as well.

My personal opinion is that this is a purchase that is recognizing your stated love between two people and should be one of the happiest events/moments in your life. It should not be uncomfortable, or so stressful that you’re worried about how much you are spending on this ring; rather it should be purchased within your comfort zone, after setting your own personal goals as to what is important to you about this purchase. Believe me; she’s going to love what you do!!