How much to Spend on an Engagement Ring?

January 17, 2024

Buying an engagement ring is one of the most significant financial and emotional investments you'll make. With so many opinions on how much to spend—ranging from traditional salary rules to modern budgeting approaches—it can feel overwhelming. Should you follow the “three-month salary” rule, or is there a smarter way to budget?

This guide breaks down different spending strategies, alternatives to diamonds, and financing options, ensuring you make the best choice without financial strain.

If you are planning to propose to your lady love, Congratulations it is surely a milestone to remember for a lifetime. Now before you prep yourself to pop the big question, you will need to select her favorite style of engagement ring. From selecting a perfect cut to designing the ultimate engagement ring, many of you are aware of the basic details that go into prepping your diamond ring. While the biggest question remains unsolved,” The Cost of your Engagement Ring” is a topic that is filled with myths and misconceptions.

Want to hear more? With the help of our diamond and jewelry experts, we are here to debunk the myth about how much to spend on an engagement ring. Find out how to shop for your sweetheart’s engagement ring.

Traditional Rules vs. Modern Perspectives

1. The Three-Month Salary Rule (And Why It’s Outdated)

The three-month salary rule suggests spending three months’ worth of income on an engagement ring. This idea originated as a marketing strategy by De Beers in the 1930s, and while it was widely adopted, it doesn’t always fit modern financial realities.

Before we ride straight on to the details and numbers, it is essential to know that every individual has their financial situation and spending a specific amount isn't a necessity to fit the myth.

According to our experts, the average amount spent on engagement rings in 2022 is around $6000 worldwide. Some to-be-weds prefer to spend less and some more depending on their budget.

As we narrow down the specifics to the 4C’s _ Carat, Color, Cut, and Clarity you will find a gamut of natural diamonds offering prices.

Our experts suggest that the price of your engagement ring should be based entirely on the size and appearance your partner desires. Additionally, factors such as carat size, diamond quality, and the choice of metal significantly influence the overall cost.

Reality Check:

If you earn $60,000 per year, this rule suggests spending $15,000 on a ring.
But today, couples prioritize savings, homeownership, and travel over expensive jewelry.

🔹 Better Approach: Instead of following a rigid formula, focus on what you can afford without debt while considering your partner’s expectations.

2. The One-Month Salary Rule: A Middle Ground?

A more flexible version of the traditional rule is the one-month salary rule, where you spend around 4-6 weeks of earnings on a ring.

For example:

If your salary is $5,000 per month, this rule suggests spending $5,000 on a ring.

This approach aligns better with financial responsibility while still allowing for a high-quality ring.

✅ Who is this for? Those who want a traditional guideline but without overspending.

3. What Do Most People Actually Spend?

Recent studies show:

The average engagement ring cost in the U.S. is $5,900 (but many spend between $1,000 - $10,000).
60% of buyers spend less than $5,000.
Millennials and Gen Z prioritize value, ethics, and personal preferences over price.

🔹 Takeaway: There’s no “right” amount—spend what aligns with your financial situation and your partner’s style.

How to Determine the Right Budget for You

1. Consider Your Financial Health

Before setting a budget, ask yourself:
✅ Do I have any outstanding debts (student loans, credit card balances)?
✅ Will this purchase impact other financial goals (buying a home, savings, wedding costs)?
✅ Can I pay for this ring without relying on financing?

🔹 Expert Tip: Ideally, your engagement ring purchase should not exceed 5% of your annual income unless you have significant savings.

It deosnt matter hwo much you are will to spend on a engagement ring. What matters is, you buy something more meaningful without going broke completely. Whether it’s $1,000 or $10,000, the best price is one that fits your finances and symbolizes your love without unnecessary stress.

2. What Matters Most to Your Partner?

A more expensive ring doesn’t always mean better. Some prefer a smaller, high-quality diamond, while others love alternative gemstones or unique settings.

🔹 Compromise Smartly: If they want a bigger stone, opt for a lower-carat weight with excellent cut to maximize sparkle without overspending.

How to Set a Realistic Budget for Your Engagement Ring

Setting a budget helps to explore options based on ring styles, metals, and diamond types.

For instance:

Solitaire Rings: Prices can range from $1,500 to $5,000, depending on the diamond size and quality.
Halo Styles: These offer more sparkle and can start at $2,500 for a 1-carat diamond.
Metals: Platinum is more expensive, while white or yellow gold is more budget-friendly.

For a modest budget, you could prioritize a smaller carat diamond with exceptional clarity or cut, ensuring it looks brilliant without breaking the bank.

Consider alternative gemstones for a unique and cost-effective choice.
Lab-grown diamonds offer the same brilliance at a lower price.
Vintage rings can provide exceptional value with unique designs.

Should You Spend Based on Salary When Buying an Engagement Ring?

The old "three months' salary" rule is outdated. Instead, consider setting a budget based on your annual income or saving a fixed amount each month leading up to the purchase. For example, allocating 5–10% of your yearly income can be a practical approach. It’s about planning smartly, not spending extravagantly.

Personal financial goals should come first before following traditional guidelines.
Discuss budget expectations with your partner to ensure alignment.
Consider setting up a dedicated savings plan for the ring.

Smart Tips to Negotiate the Best Price on an Engagement Ring

Ask About Off-Season Discounts: Jewelers often have sales during quieter months.
Inquire About Financing Options: Many stores offer payment plans that make it easier to stay within budget.
Negotiate for Upgrades: Ask if they can offer a slightly larger carat size or a higher-quality setting for the same price.
Compare Prices: Visit multiple jewelers to ensure you’re getting the best deal.

Don’t hesitate to have an open conversation with the jeweler—they often have room to adjust prices or provide additional perks.

Look for jewelry store loyalty programs or membership discounts.
Consider pre-owned or refurbished rings for added savings.
Ask about complimentary services such as free resizing or maintenance.

How to Choose an Engagement Ring That Fits Your Budget

When you ask the experts, we say, “It all depends on your budget!” We suggest you calculate your priorities before you get into this step. Focus on your budget, relationship style, and the kind of ring your partner would love. Remember, it’s more about your love journey than this ring, and if you ask your jeweler, we could help you select a ring that fits both your budget and style!

Consider future expenses like the wedding and honeymoon while budgeting.
Choose a timeless design to ensure long-term satisfaction.
Opt for a setting that enhances the diamond’s appearance without extra cost.

The Truth About Engagement Ring Cost Myths

Lovers follow all the traditions tied to the wedding, while some of these traditional beliefs turn out to be myths. Especially when it comes to engagement ring costs, peers are pressured to spend a certain amount.

The biggest engagement ring myth lies in - “You need to spend a 3-month salary on your engagement ring”

There is a long-withstanding traditional culture stating that you must spend at least 3 months on your ring. However, there is no solid rule on how much to spend on an engagement ring and myths like these only add unnecessary pressure.

Our experts suggest that every proposal spouse must focus on the budget and style that you wish to surprise them with.

Breaking the 3-Month Salary Rule for Engagement Rings

There is a long-withstanding traditional culture stating that you must spend at least three months' salary on your ring. However, there is no solid rule on how much to spend on an engagement ring, and myths like these only add unnecessary pressure.

Our experts suggest that every proposal spouse must focus on the budget and style that you wish to surprise them with.

The “three months’ salary” rule was created by marketing campaigns, not practicality. Today, most couples prioritize thoughtful decision-making over arbitrary rules. Modern relationships are about partnership, so your budget should reflect your unique needs, not outdated expectations. At the end of the day, what matters most is choosing a ring that carries meaning, not a price dictated by myths.

Investing in a high-quality diamond over size can be a smarter choice.
Custom-designed rings can sometimes be more affordable than branded options.
Consider purchasing from independent jewelers for better deals.

How to Buy an Engagement Ring on a Budget

Getting the ring of their dreams on a budget is now possible with Rustic and Gold. We offer the finest range of luxe diamonds and stones with a premium 14K gold metal customization. You can add a special love note or engraving to your bands.

Ditch the solid white diamonds and fall in love with the beauty of antique luxuries and the finest craftsmanship and Yes! Everything is on the budget set by you.

Look for holiday or seasonal promotions for added savings.
Explore financing or layaway options to spread out payments.
Trade-in older jewelry pieces to offset the cost of a new ring.

Personalize Your Engagement Ring to Make It Unique

Explore our comprehensive guide on engagement rings, including tips and insights, in our Engagement Rings Descriptive Guide.

You can personalize your engagement rings to the dreamy settings or go for the solid bold look. Design your engagement rings with us.

Final Thoughts: Spend Smart, Not Just Big

Forget outdated rules—spend what aligns with your financial situation and your partner’s preferences. The goal isn’t just to impress; it’s to find a meaningful ring that represents your love without financial regret.

🔹 Key Takeaways:

✔ Don’t blindly follow the three-month salary rule—it’s outdated.
✔ The average spend is around $5,900, but many spend much less.
✔ Consider alternative gemstones or lab-grown diamonds to save money.
✔ Shop during off-peak months to get better deals.
✔ Financing is an option, but avoid high-interest plans.

💍 At the end of the day, the best ring is the one that fits your partner’s style—and your budget!