Should You Spend Three Months’ Salary on an Engagement Ring? | Kimberfire (2024)

You’ve found the love of your life and you'd like to take your relationship to the next level. That means one thing: it's time to buy an engagement ring for your forever partner.

At this point, there’s a lot of questions to answer, including diamond size, whether to opt for natural, earth-mined diamonds or lab grown diamonds, can you negotiate the price of an engagement ring, etc. These all boil down to the big question of - how much money should you spend on an engagement ring?

There is a widely cited “rule” that you should spend three months’ salary on an engagement ring. This stems from a 1930s De Beers advertising campaign that convinced men to spend roughly one month’s salary on this purchase.

By the 1980s, one month’s salary was no longer the rule. It turned into two months. And today, many believe that a minimum of three months’ salary is a good starting point.

But Is It True?

Before we go any further, remember this: an engagement ring is all about love and commitment. While money always comes into play, it’s the thought that matters.

Let’s start with a few examples based on the three months’ salary rule:

  • Annual income: $30,000 – Cost of ring: $7,500
  • Annual income: $60,000 – Cost of ring: $15,000
  • Annual income: $120,000 – Cost of ring: $30,000

In Canada, theaverage cost of an engagement ringis $3,500.

For most people, that’s a far cry from three months’ salary. Think about it this way: $3,500 breaks down to a monthly salary of $1,166 or an annual income of roughly $14,000.

In other words, most people aren’t spending three months’ worth of salary on an engagement ring. In fact, with anaverage Canadian earning$54,630/year or $4,553/month, they aren’t even spending what they earn in one month.

Societal Pressure Can Weigh Heavy On Your Mind

Societal pressure is unrelenting. You see what your friends are paying for engagement rings. You see celebrities sporting rocks the size of a baseball, so much larger than the average carat size for an engagement ring. And of course, your online search turns up one “rule” after the next.

Additionally, internal pressure and stress have the ability to wear you out, cloud your judgment, and lead you down a dangerous financial path.

These tips can save you from caving to societal pressure:

  • Don’t associate the cost of an engagement ring with love or affection: It’s easy to believe that spending more shows the other person how much you care. This isn’t true. It’s all about your love for each other.
  • Don’t try to keep up with the Joneses: You don’t have to match the engagement ring that your best friend purchased for their partner. You don’t have to keep up with all those Instagram influencers who are showing off their sparkling diamonds. Do your thing and let them do theirs.
  • Do your research: It’s a common misconception that you have to spend tens of thousands of dollars (or more) to purchase a high-quality engagement ring. Do your research to learn more about your options. For example, if you’re buying a diamond engagement ring, cut, colour, and clarity always come into play.

So, What’s the Answer?

Even with all this information, you may still be wondering if you should spend three months’ salary on an engagement ring.

Here’s the best answer we can provide: it depends!

If you’re on a tight budget and three months’ salary is out of the question, don’t push your financial limits.

Conversely, if you’re comfortable spending three months’ salary or more, it’s perfectly acceptable to do so.

You don’t have to adhere to any rule when buying an engagement ring. Do what’s best for you, your financial circumstances, and of course, that special someone in your life. Also, don't forget that there are other expenses that will follow a proposal, most notably your wedding bands and the cost of the big day.

Whatever your budget may be, we’d love to help! Browse our engagement rings in Toronto, or view ourlatest creations on Instagram. Please contact us toschedule a virtual or in-office consultation.

We look forward to meeting you!

Should You Spend Three Months’ Salary on an Engagement Ring? | Kimberfire (2024)

FAQs

Do you spend 3 months salary on an engagement ring? ›

Earlier, people spent their three-month salary on engagement rings as it was a popular notion. The cost of living back in the day was indeed much lower, and people could afford to spend 3 months' salary on a ring. However, times have changed and millennial couples don't generally follow this rule.

How much does Dave Ramsey say you should spend on an engagement ring? ›

If you're working a good, steady, full-time job, I think a good rule of thumb for engagement rings is one month's pay. Some jewelry stores will tell you two or even three months' pay, but that's just too much. Lots of people get engaged or married with cheaper rings, and the relationship and the jewelry last just fine.

What is the 2 month rule for engagement rings? ›

You may have heard of the "two-month rule," which suggests you should spend two months' worth of your income on an engagement ring. While this may be what you have heard, the reality is that there is no set rule on how much money you should spend on an engagement ring!

How many months should you spend on an engagement ring? ›

You Should Spend Three Month's Worth of Your Salary on a Ring. "There is a long-standing cultural tradition of spending two to three months' salary on an engagement ring.

What is the rule for spending on engagement ring? ›

It's known as the "three months' salary" rule, and it implies that a buyer should put three months of their salary toward a sparkler for their future spouse. For context, The Knot's 2023 Jewelry and Engagement study found that the average cost of an engagement ring in the US is $5,500.

Is $3000 a lot for an engagement ring? ›

Millennials spend about $3,000 on engagement rings rather than the average amount of $5,000. High-class individual spends $20,000 or more on their engagement ring, and this often drives the average engagement ring cost upward.

Is $20,000 too much for an engagement ring? ›

An engagement ring budget of $20,000 is much higher than the median amount spent on diamond rings. While $6,000 is the national average cost of a ring, everybody's financial situation is different.

How long should you wait to propose after buying the ring? ›

The best time to buy an engagement ring is at least six weeks before the proposal, but generally, three months prior is a better timeline. Is it ok for couples to pick the engagement ring together? Yes!

What is the 3 month rule? ›

The three month dating rule is a trial period that allows couples to shift from the honeymoon phase of dating to an integrated love phase. "What I mean by that is usually a few months into dating, we start to see some of the quirks, or maybe we start to notice things that we find annoying or irritating," Pharaon says.

How much should I spend on an engagement ring if I make $100,000? ›

The Correct Answer to How Much to Spend
Salary (US Dollars)Minimum To Spend (US Dollars)Maximum You Should Spend (US Dollars)
$75,000$550$9,200
$100,000$550$12,500
$125,000$550$14,400
$150,000$550$20,500
7 more rows

What is a realistic amount to spend on an engagement ring? ›

While engagement rings are a pricy investment, the usual cost tends to be below $10,000, with a national average of $6,000, according to The Knot's 2022 Jewelry and Engagement Study.

What is the cheapest month to buy an engagement ring? ›

The best deals on engagement rings can typically be found during major sales and events such as Black Friday, Cyber Monday, before Valentine's Day and after the holidays when jewelry stores offer discounts to attract shoppers.

How much should I spend on an engagement ring if I make 100000 a year? ›

If you make $100,000 a year, you're supposed to spend $25,000 on an engagement ring. If you make $200,000, the ring clocks in at $50,0000.

What is the average salary to spend on an engagement ring? ›

The two-to-three-month-salary rule

For example, if you take home $4,000 a month, you should spend $8,000 to $12,000 a month on an engagement ring; if you take home $10,000 a month, you should feel obligated to spend $20,000 to $30,000.

Is $20 000 too much for an engagement ring? ›

$20,000 is a substantial budget and falls within the mid to high range for engagement rings. It's a popular budget for individuals seeking a balance between quality and cost.

Is $2500 enough for an engagement ring? ›

A $2500 diamond ring budget will still allow you to look at a variety of diamonds, but you may have to make a few sacrifices across the Four 4Cs to balance a ring that's both appealing to look at and value for your money.

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