When it comes to purchasing an engagement ring, one of the most commonly asked questions is, “How much should I spend?” You’ve probably heard the old saying that you should budget a few months’ salary, but is that advice still relevant today?
The “three months’ salary” rule has been around for decades, but modern couples may find it doesn’t always fit with today’s realities. Let’s explore the origins of this rule and what actually makes sense when planning your engagement ring budget.
Where Did the "Three Months' Salary" Rule Come From?
Believe it or not, this concept of tying your ring budget to your salary wasn’t always part of the engagement tradition. It traces back to a clever marketing campaign by the diamond company De Beers in the 1930s. At the time, the econo
my was recovering from The Great Depression, and diamonds weren’t selling well. To combat this, De Beers launched a campaign suggesting that one month of your salary should go toward the ring as a symbol of commitment. This idea stuck, and over the decades, it expanded to two months and eventually three months’ salary.
De Beers also introduced the iconic slogan "A Diamond Is Forever," which further cemented the idea that diamonds were the ultimate token of love. And while this strategy succeeded in boosting diamond sales, it’s important to remember that it was just that—a marketing tactic, not a financial rule to live by.
Does the Rule Still Apply Today?
In short, no—it doesn’t have to. Modern couples are making decisions based on what works best for them, not an arbitrary rule from a century ago. According to The Knot, the average cost of an engagement ring in the U.S. is around $5,500, though this number can fluctuate depending on location, stone size, and metal choice.
Instead of focusing on a specific percentage of your income, it’s more practical to set a budget based on your current financial situation. Spend what feels comfortable and won’t put a strain on your finances. After all, the goal is to start your life together, not to be burdened by debt..
A New Perspective on Engagement Rings
One way modern couples are making their engagement ring budget work for them is by choosing lab-grown diamonds. Lab-grown diamonds offer the same brilliance and durability as natural diamonds but often come at a fraction of the price.
If you’re torn between lab-grown and natural diamonds, it’s worth considering both options before making your final decision. Lab-grown diamonds have become increasingly popular for those looking to get more value for their money. Plus, they’re an ethical and environmentally friendly choice.
For more in-depth insights into the differences between lab-grown and natural diamonds, check out our previous post here where we break down the pros and cons of each. This can help you make an informed decision based on your budget and values.
How to Set a Budget for Your Engagement Ring
Here are a few steps to set a budget that works for you:
- Assess Your Finances: Consider your current income, savings, and upcoming expenses (weddings, travel, or a house). You don’t want to start your engagement with financial stress.
- Choose What’s Important: Whether it's the size of the stone, the metal, or the design, figure out what matters most to you and your partner.
- Don’t Be Afraid to Go Custom: A custom-designed ring can be more affordable than you think, and it allows you to create something unique that fits within your budget.
- Consider Alternatives: If a natural diamond is out of your price range, consider lab-grown diamonds or other gemstones like sapphires or emeralds.
If you need more help figuring out the right ring for your budget, we’re here to guide you. Whether you’re looking for a custom design, exploring lab-grown diamonds, or just need advice on what’s best for your unique situation, feel free to visit us at Savaro Jewelry in the Woodbridge Jewelry Exchange. We’d love to help you find the perfect ring without the stress!
Final Thoughts
Ultimately, the “three months’ salary” rule is just one way to think about your engagement ring budget—but it’s far from the only way. What matters most is that you choose a ring that represents your love and commitment without putting unnecessary strain on your finances. After all, this is just the first of many important decisions you’ll make as a couple. The best advice? Spend within your means, and remember that the ring is a symbol of your love, not your paycheck.