Finding the Right Budget: How Much to Spend on an Engagement Ring (2025)

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by Suzanne Sachs • 5 min read

THE BASICS ---

An engagement ring can be one of the most intimidating purchases you may ever make, not only because of what the ring represents, but also for what it may cost. So how do you determine the right budget and exactly how much you should spend on this very significant piece of jewelry?

WHAT YOU NEED TO KNOW--

• How Much Do You Make Every Month?
• Setting an Engagement Ring Budget
• Income
• Debt
• Upcoming Expenses
• Wedding Cost
• Future Expenses
• Comfort Level
• Worst Reasons To Choose an Engagement Ring Budget
• An Arbitrary Demand
• Celebrity Rings
• Keeping Up With Others
• Impressing Others
• Frequently Asked Questions
• Setting an Engagement Ring Budget

How Much Do You Make Every Month?

The idea of spending the equivalent of 2-3 months’ wages on an engagement ring was a standard set by the diamond and jewelry in response to inquiries and confusion about what was an appropriate amount. This idea first began in the 1930s with just one month, but gradually evolved to two and eventually to three in the 1980s. This number, however, is just an arbitrary figure, though it does demonstrate one’s ability to provide for a bride-to-be and financial stability for making such a significant purchase.

That figure, however, is not a requirement, and there is great variability for engagement ring budgets. Everyone’s living expenses, debt, income, and other financial factors vary, and therefore, everyone’s budget for an engagement ring will also vary. Furthermore, couples should carefully discuss their comfort level with a ring budget, regardless of their financial situation, to ensure they are on the same page about how much is the “right” budget for them.

Setting an Engagement Ring Budget

There are many different considerations to make when deciding how much to spend on an engagement ring. While the 2-3 months’ income guideline can be a starting point, couples should also factor in...

• Income

Not only should one’s current income be a factor for engagement ring budgeting, but also note the income stability, any seasonal or bonus fluctuations, and the possibility of upcoming raises.

• Debt

The amount of payments necessary for any credit cards, car or student loans, or other debts can significantly impact how much a couple may have to spend on an engagement ring.

• Upcoming Expenses

If there are any imminent purchases, such as the need for a new car or plans for graduate school, those expenses should be taken into account when setting an engagement ring budget.

• Wedding Costs

Most couples pay at least a portion of their wedding costs themselves, and they should keep that in mind when buying an engagement ring and how much that wedding-to-come may cost.

• Future Expenses

Any large, future expenses should be taken into consideration for an engagement ring budget, as these expenses may need to be saved up for over several years. This could be starting a family, buying a house, or moving across the country.

• Comfort Level

Regardless of overall finances, not all couples may be comfortable with a very expensive ring, or with a very minimalist ring. Discussing the comfort of the engagement ring budget is essential for both partners to be happy with the purchase price.

Worst Reasons to Choose an Engagement Ring Budget

While it is important to consider one’s overall financial budget when planning for an engagement ring purchase, it is also important to note poor reasons to pick a price point. The very worst reasons for an engagement ring budget include…

• An Arbitrary Demand

If someone says an engagement ring HAS to be a certain minimum price but has no reasoning other than wanting it, reconsider the budget.

• Celebrity Rings

Celebrity engagement rings can be beautiful and help set jewelry trends, but their budgets are out of reach of most non-celebrity couples.

• Keeping Up With Others

A best friend, sibling, or someone else spending a certain amount is no reason to set a similar budget when your finances may be very different.

• Impressing Others

Spending more or less on an engagement ring to impress others is not a way to ensure a healthy relationship with anyone involved.

Frequently Asked Questions

How do I determine how much to spend on an engagement ring?

Consider your current financial situation, income, and savings. Balance this with your partner's preferences and the symbolic importance of the ring. Aim for a budget that reflects your commitment without causing financial strain. 

Is there a traditional rule for how much to spend on an engagement ring?

Traditionally, it's suggested to spend two to three months' salary on an engagement ring. However, this rule is outdated and it's more important to set a budget based on your personal finances and comfort level.

What if we decide we don't need a traditional engagement ring?

Discuss with your partner if a traditional ring is necessary. Some couples opt for alternative symbols of commitment, such as a different type of jewelry, a memorable experience, or even a shared investment in something meaningful to both.