Buying an engagement ring is an important purchase, and you probably imagine proposing on bended knee as your partner cries with happiness and oohs and aahs over the ring.
As you start thinking about which ring to buy, you might wonder how much you should spend. You’ll obviously want to choose one that makes your partner excited and proud to wear it, but at the same time, engagement rings can be expensive so it's good to do your research.
The following will help give you the information you need to get an idea of how much you should spend on an engagement ring in Australia.
How much is the average amount spent on an engagement ring in Australia?
The average amount spent on an engagement ring is $5,367, according to the 2020 Australian Wedding Industry Report. That's just an average, however, and you can use it as a guideline if you'd like, but the decision on how much to spend should be your own.
Three months salary rule
You've probably heard of the old rule that you should spend three months’ salary on an engagement ring. That rather meaningless number came from a marketing campaign the De Beers diamond company ran in the 1930s. Men were told that to show their love to their bride-to-be, they should spend a months’ salary on her engagement ring. That number eventually grew to two and then three months’ salary.
These kinds of expectations, combined with endless online photos of celebrities flashing their gigantic engagement rings, can put pressure on you when you’re deciding how much to spend.
There’s really no strict rule of thumb for how much to spend when you’re shopping for an engagement ring. It’s all a matter of how much you’d like to and can afford to spend, and what type of engagement ring (if any) your partner would like.
How do you budget for an engagement ring?
Figure out how much you’d like to spend. Think about the type of ring your spouse-to-be might like. Does she like classic styles, or does she prefer more modern jewellery? Would she prefer a diamond or another stone? As you narrow your choices down, shop around to see what’s available and at what prices. This will help you get an idea of how much you’d like to spend.
Determine how you’ll pay for your ring. Calculate your budget by collecting records of your income as well as your expenses. If you usually have a surplus, you could put part of it toward buying an engagement ring. If not, figure out how you reduce your spending so you can start saving some out of each paycheck to pay for the ring.
Should you buy an engagement ring on credit?
You can also buy the ring using a credit card, but this will cost you more money in the long run and make you run the risk of starting your marriage in debt. And you’re also likely to have some wedding and honeymoon expenses in the near future, so incurring new debt probably isn’t wise.
If you do plan to use credit, check to see if the jewellery store where you’d like to buy the ring offers a credit plan. They can often have better terms than your credit card company offers, and some may even have plans that let you make monthly payments with no interest.
What affects the price of an engagement ring?
Several factors can affect the price of an engagement ring, including the gemstones used, the type of metal, and the ring’s setting.
If you’re buying a diamond ring, you may have heard about the 4 Cs, which all affect its value:
Colour - The more clear and colourless the diamond, the greater its value. Cut - Some people confuse 'cut' with 'shape'. A diamond's cut actually refers to the quality of its faceting, affecting its value.
Clarity - A diamond with imperfections will be less expensive, although these flaws may not be visible without magnification. To save money, you may choose to sacrifice some points on clarity.
Carats - A diamond’s size is expressed in carat weight, and the more carats it has, the larger and more expensive it is.
When it comes to the metal used in the ring, platinum is the most expensive choice, but it’s also the most durable. Yellow gold, white gold, and rose gold are also popular, and they’re less expensive choices compared to platinum.
Once you’ve decided which engagement ring to buy, contact us at JewelCover to get a quote for comprehensive engagement ring insurance. You’re welcome to fill out our online form or call us at 1300 522 808. After all, you and your spouse-to-be will want to protect its value so it can be worn without worry.