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Overwhelmed by the cost of engagement rings? As one of the most significant purchases someone can make in their life, aside from a house or a car, buying an engagement ring does seem daunting. According to Wedding Wire’s 2021 Newlywed Report, the average person spent $5,500 on an engagement ring, while 18 percent of proposers spent over $10,000. However, don’t let this sway you from buying the best ring for your budget.
Here are money-management tips on how to save for an engagement ring. With these tips on stashing cash away and some sage advice, you’ll have a ring in your pocket and a knee on the ground in no time.
Research Engagement Rings and Have a Cost in Mind
Engagement rings require research, the same way anything else costly would, such as a car or another type of investment. As you start thinking about saving, look into various jewelers and sellers to find someone reputable who makes high-quality settings.
As you visit jewelers and examine diamond engagement ring settings, be mindful of the metal and diamond in particular. Some metals are more affordable than others. For instance, platinum engagement ring settings are on the higher end of the spectrum, while white gold, yellow gold and rose gold engagement rings, although equally beautiful, are on the lower end. Also, when it comes to the diamond, be sure to understand the 4Cs of diamond quality: carat weight, color grade, clarity grade and cut grade.
Getting familiar with engagement ring prices and learning what your partner prefers are equally as important. Talk and learn what your partner likes in a ring, as well as the most desired features. If they are keen on halo engagement rings or semi-mount rings, use these clues as a guide on your hunt.
Break Down Your Budget
By knowing the style of engagement ring you’re aiming for and a realistic cost, you can start your savings plan. Take your budget for an engagement ring, along with the timeline in which you’d like to pop the question, and then divide the months. This should provide some benchmarks on how much you need to set aside to get the perfect engagement ring. Having a monthly goal can make the journey until the big day that much more exciting.
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Set Up Automatic Transfers
Set up automatic transfers in your online banking. These types of transfers ensure money is set aside each month from your checking account to your savings account. If you tend to be forgetful, this is a great way to set it and forget it. When the time comes to buy an engagement ring, the accumulated money will be there and waiting.
Create a Discipline with Your Budget
As you save for an engagement ring, create a strict budget and discipline. Take a look over your finances and cut out any unnecessary spending or habitual money pits. Seeing where precisely the paycheck goes can help you weed out frivolous items and such. For example, if you hit up the bar each week, you could be dropping lots of cash on cocktails and drinks. Instead, cut back on joining your friends to maybe once a month. When you create a budget and picture your proposal day, keeping this discipline is all worth it.
Put Investments and Other Big Ticket Items on Hold
When saving for an engagement ring, you can acquire the money faster if you put investments and other big-ticket purchases on hold. Whether you had your sights on the latest car model or wanted to upgrade your entertainment center, these things can wait. When you propose to your significant other, you won’t regret it.
Stash Bonuses and Monetary Gifts
Get a hefty holiday work bonus or a monetary gift from a family member? Stash it away to help save for an engagement ring. By putting away this kind of cash instead of coming directly from your paycheck, you can reach your engagement ring goals in no time. Unexpected tax refunds are another lump sum you can secure in your ring fund.
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Explore Cheaper Date Options
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One of the easiest ways to save for an engagement ring is to explore cheaper date options. This is especially true if you and your partner step out on the town for soup-to-nuts dinners frequently or take vacations to far-off destinations. Instead of spending this kind of cash, cut back and consider spending time together using more affordable means.
An inexpensive date could be as simple as having a picnic in the park or visiting a local art gallery in your town. It can be glamping in a romantic yurt at a state park a few hours away instead of spending a week at a cushy, tropical Airbnb. Whatever cheap date option you choose, what matters is spending time with each other. Just don’t let them get suspicious and make the dates seem intentional.
Ask About Financing Options
When you find the perfect engagement ring, ask the jeweler about their finance options. Hopefully, you have plenty of money set aside from saving, but sometimes, the perfect ring (or partner) crosses your path unexpectedly. With a financing program, you can buy the ring of their dreams, paying slowly in increments without saving for months and years. If you’re eager to lock down the person you want to spend the rest of your life with, this is a wonderfully convenient option.