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How To Afford A Diamond Engagement Ring

For many people, getting engaged is a milestone in life. However, there a number of reasons that prevent lots of younger couples from getting engaged. One of the main reasons is finances. Engagement rings contain rare precious metals and gemstones like diamonds;  this means they are often quite expensive. Although the cost of the average American engagement ring continues to rise, this does mean they are unattainable. In fact, with the right budget skills, most people will find they can afford a diamond engagement ring.

Creating An Engagement Ring Budget

One of the most important things to do is to determine the ring budget. By figuring out exactly what you can spend, you will be able to purchase an engagement ring online that fits your lifestyle. Essentially, there are two separate ways to pay for a diamond ring: save up the total cost or pay monthly. Most people prefer to save up the total cost of the ring and pay for it this way. While there are many advantages to saving up, the primary problem is this takes time. For example, if you decide you want a $5,000 one carat diamond ring, you will have to put money away little by little to afford this. On the other hand, certain windfalls like tax returns of annual bonuses can provide the total amount needed to afford a diamond engagement ring. With some careful planning, this can help you decide when to buy the ring and propose.

afford a diamond engagement ring
Have you started saving up to propose this Valentine’s Day?

How Much Can You Afford In Monthly Payments?

Another way to afford a diamond engagement ring is to set up monthly payments. Many companies offer financing for jewelry purchases, such as Affirm. Although interest rates can range widely from 10% to 30%, monthly payments for an engagement ring allow many more people to propose. However, one thing to consider with monthly payments is determining your ring budget. While many people think about only the final cost, the real way to decide how to afford an engagement ring is to figure out your monthly payment. If you can afford a $400 monthly payment for 12 months, then your total budget for the ring would be $4,800. Additionally, you must factor in your monthly interest payment. This will help you decide which diamond ring you can truly afford.