There are many attributes, which you must keep in mind once you start your search for the perfect diamond engagement rings. This may include the type of the main gemstone, budget, jewelers, diamond ring setting, designs, etc. Out of these, the budget of your diamond rings is the most important one. Obviously, almost every consumer may find this task a bit daunting since you cannot compromise even a bit on your diamond engagement rings. Plus, there are many clichéd rules regarding how much to spend on your diamond engagement rings.
One of the most common rules, in this case, is the three months’ salary policy. That is, you will have to spend your entire three months’ salary on your diamond rings. This is actually one of the marketing strategies of diamond vendors and you do not have to pay attention to such phony rules. Instead, think rationally and set a budget that complements your financial status as well as the style of your better half.
Thankfully, it is not that challenging to figure out how much you can spend on your diamond engagement rings. Simply put, when determining your budget, make sure that you can handle it. Keep your additional expenses in your mind as well such as the wedding party, buying a house, buying a vehicle, honeymoon trip(s), etc. Below are some tips in order to help you figure out a suitable budget for your diamond engagement rings.
Analyze your Financial Status
The first step is to determine your current financial position. For this, you must collect the detail of your yearly income as well as their sources. This may include your take-home pay, the money you receive from different sources on a regular basis, interest on different investments, etc. Now, calculate your individual as well as overall income and record it on a spreadsheet.
Similarly, collect the details regarding your entire year’s expenses. This may include your home rent, mobile phone payments, utilities, trash collection charges, credit payments, internet service expenses, car expenses, loan payments, other monthly payments, etc. After evaluating these fixed expenses, get a clear picture about your other miscellaneous expenses such as restaurant bills, car repairs, gas, grocery bill, etc. Combine all these, determine your entire year’s expense, and record it.
Now, compare your income against your expenditure. If your income is greater than your expenditure, you are financially stable and you may save the extra money for funding your diamond engagement ring. On the other hand, if your expenditure is higher than your income, you will have to trim down your expenses efficiently and start saving for your diamond ring purchase. Make sure to keep enough money to fund your future expenses as well such as the engagement party, wedding bands, honeymoon, etc.
You can use the same data to plan all your financial undertakings. Of course, the money you spend and earn may change over time. So update all such changes on the data sheet and use it as a guide for other purchases such as house down payment funds, anniversary gift, education for your children, Recreational Vehicle rentals, etc.
How to Finance
You will have numerous options for funding your diamond engagement rings such as through a savings account, credit card, jewelry store credit, etc. It is recommended to thoroughly analyze each of these options before jumping into a conclusion so that you do not get ripped off.
This is the best option if you do not want to get indebted, especially for your diamond ring purchase. However, it is not at all a good decision to spend your entire savings on diamond engagement rings. So, make sure that you can spare a good amount for your future needs as well if you are planning to fund your engagement ring using your savings account. Otherwise, look for alternative options.
You can finance your diamond rings using credit cards or by combining your savings and credit. Here, figure out how much money will you get as credit. Be sure that you will be able to repay the credit amount on time. In most cases, the credit payments may continue into the wedding. Note that you will have to meet many other financial needs after your marriage. Hence, it is ideal to seek permission from your better half as well rather than assuming that she will agree to it.
Jewelry Store Credit
If you are not ready to use your credit card in order to finance your diamond engagement ring, choose a diamond ring store that offers diamond ring finance policy. Usually, most jewelry stores finance diamond rings at better rates when compared to most of the credit card companies. In fact, there are many jewelry store credit plan in which you can avoid the interest if you can pay the entire amount within their promotional period. However, make sure to go through each and every clause in your diamond ring financing contract.