So, you’re ready to take that next step. You’ve been living together for quite a while, consolidated not just your belongings but your finances as well, and now you’re ready to pop that question to her. Proposing is a big step and you want to make sure you buy that ring she’ll love, but how you do save money when engagement ring shopping?
Yes, it’s true that engagement rings are expensive. The bigger the diamond, the more money you can expect to shell out. There are so many choices – princess cut, oval, white gold, platinum – it can be a bit daunting to go ring shopping for the first time! You want to make sure you buy a ring that she will love and will suit her taste, but that won’t cost you a year’s salary.
The biggest debate around engagement rings is how much to spend on the ring. The old rule used to be three month’s salary, however many people cannot afford to spend that much on an engagement ring nowadays. Spend within your means. Yes, you do want to buy a ring she will love but you don’t have to buy her the biggest, flashiest diamond ring because this expense is just the start of many expenses to come (wedding, honeymoon, mortgage, children, etc.). Weddings can get very expensive but that doesn’t mean overspending on credit cards and personal loans. Read our blog article 6 ways to save money on your big day to make the most of your pre-wedding budget.
Here are some tips to save money when shopping for that perfect (and affordable) engagement ring:
When you start to explore purchasing an engagement ring, it definitely helps to shop around online to compare rings, prices and jewellers. Many jewellery websites will now allow you to create a customised engagement ring directly on their website. You can play around with the different bands and ring styles and compare costs on the different kinds of engagement rings.
Of course, if you prefer to shop in-person and speak to an employee who has the knowledge of the different ring settings, bands, etc. then you can visit a few different jewellery stores to compare prices. Just remember, don’t feel pressured into buying anything that you aren’t comfortable with. While the employee has heaps of knowledge and can answer your questions, they will also try to ‘sell’ you that ring (or purchasing a ring from their store vs. a competitor). If you aren’t completely happy with an engagement ring, or if you don’t think your soon-to-be-fiancée would be completely happy with it, don’t buy it.
Online shopping is a wonderful luxury. We purchase clothes, shoes and even groceries online so why not engagement rings? Buying an engagement ring online can save you upwards of 20% with some jewellers as opposed to buying in-store and the quality of the diamond can be just as flawless. Of course, you don’t have the benefit of looking at the ring in-person and speaking to someone directly about any questions you may have, but the savings can certainly be in your favour when you are shopping on a budget. Many websites also include free shipping and returns when you purchase online.
Avoid the Big Brands
When you think of Tiffany’s, you immediately think of engagement rings. Another word that might come to mind could be: expensive. When you purchase an engagement ring from Tiffany and Co you are also purchasing the label. The popular chain retailers like Tiffany’s spend millions of dollars on their marketing strategies because they give consumers peace of mind when making purchases. When you buy jewellery from Tiffany and Co you know you’re buying quality. Of course, it comes at quite a cost.
Buying at local jewellers can save you money and the rings tend to have better craftsmanship. Local jewellers can also customise the engagement for you a cheaper price than most of the big retailers.
Another great tip to save money when engagement ring shopping is to start saving up the moment you decide you want to pop that question. Of course, it might be difficult to save if you have joint bank accounts but you can open up a high-interest savings account and allocate a portion of your salary to be deposited into that every month. This is great if you know a year or so in advance so you have a lot of time to save up and it can help with debt to make sure you’re not spending more than you can afford. It’s very important that you are budgeting properly so that you can save up enough funds and not have to depend on credit. If you’re not sure how to budget, our blog article guides you on how to budget correctly.
People think buying a customised engagement ring is more expensive but the exact opposite is true. Many jewellers will work with you to customise a ring to suit any budget and you’ll be able to choose everything from the band to the stone and every tiny detail in between. This is a great way to stay within your budget but still buy her that engagement ring she will love, not to mention, one-of-a-kind!
Another option for purchasing an engagement ring is to purchase layby or in store finance. Some jewellers will offer this option as long as you commit to paying a deposit (usually 25% of the total cost) and making monthly payments for the ring.
One downside of choose layby is that you have to pay for the ring with a credit card so the store can charge you every month until the ring is paid off. You risk paying monthly interest on the purchase when you opt to pay this way and it can be tough when you are trying to save money on the purchase and keep yourself out of credit card debt in the process but it is a good option if you are unable to pay for an engagement ring in-full.
One way you can reduce the high-interest with layby is to ensure you pay off your credit card statements in-full every month.
These are just some of many ways you can save money when engagement ring shopping. While the cost of the expense can seem overwhelming, just remember that it is a small price to pay to spend the rest of your life with the one you love!
If you’re looking for expert help on managing your budget or looking for new ways to save, then get in touch with our team now. We’re here to help! Our consultants will provide you with an obligation free assessment of your financial situation and guide you on the best direction for your unique situation. Contact us today on 1300 368 322.