Money Crashers: Engagement Ring Cost – How Much of Your Salary Should You Spend?

Previously, in my work for Money Crashers, I've had a few words to say on the subject of weddings. Back in 2018, I analyzed a study finding that people who have low-budget weddings were less likely to end up divorced than those who had big blowouts. In that piece, I also noted that people who huge, expensive rings were more likely to split up than those who had more modest ones. However, those who had very small rings, costing less than $500, slightly increased their risk of divorce — possibly because they had lower incomes and were more likely to struggle financially.

Based on this work, Money Crashers suggested I write a second article, this one focusing specifically on how much it's actually reasonable to spend on an engagement ring. Spoiler alert: the answer is not "two months' salary," a number invented by the De Beers diamond cartel to sell bigger stones. In fact, there's no simple formula you can use to calculate it. Instead, you have to find out what your partner wants and expects in a ring, then balance that against what you can reasonably afford. And that means considering your partner's finances as well as your own, since you're about to merge your financial lives together.

This makes the purchase of the ring a good occasion to sit down and have the money talk with your partner — something every couple really should do before getting married anyway. Because blowing your financial future for the sake of a big diamond is no way to start living happily ever after.

Engagement Ring Cost – How Much of Your Salary Should You Spend?