Budgeting for an Engagement Ring

1. If you are looking at diamonds, you'll need to understand the four C's, which are cut, clarity, color, and carat.
2. If you are purchasing different stones, such as Emeralds or Sapphires, know what to look for in a quality stone.
3. You need to understand what inclusions, or flaws, are commonly found in the gemstone that you are interested in.
4. You need to understand the various treatments that a stone may undergo.
5. You also need to understand what makes that particular stone more valuable than another stone.
6. You should know how to recognize the real from the fake.
7. You should find out how price is determined for that stone.
8. You should compare prices for the same stone and quality at three or more stores before buying.

How Size and Quality Affect Budgeting for an Engagement Ring

Once you've educated yourself about the stone that you want, it is time to understand the difference between size and quality. How important is size to you, and are you willing to trade off a larger size for a lesser quality ring? If so, be sure that the flaws that detract from the value of that ring aren't indicators of future problems, such as cracks in the surface or center of a stone that could eventually cause the stone to break apart.

How Shape Affects Budgeting for an Engagement Ring

Depending on the type of stone you purchase, the shape of that stone can make a huge difference on its appearance and brilliance. Different shapes are treated differently depending on the stone you choose. Know the difference!

Diamond Alternatives

While you are budgeting for an engagement ring, it is a good idea to consider alternatives. Although diamonds are the classic and traditional stones for an engagement ring, you don't have to use a diamond. In fact, there are so many exquisite gemstones on the market today, and almost any of these will look wonderful in a beautiful setting as long as the stone is of good quality. Just be sure you feel out your fiance before going this route. She may have her heart set on a diamond! At the same time, there are several Synthetic & Imitation Diamonds that make excellent rings, if she is willing to have that type of stone.

How Much Money?

This is such a personal question, and nobody can really answer this for you. While people in the jewelry business favor advising clients to spend the equivalent of two months salary, this will only work if you have two months salary saved up. While of course, an engagement ring is an investment of sorts, it won't be something you will ever sell, so it isn't as if you will get a return on your investment. As you begin looking for rings, ask yourself some of the following questions.

1. What you can really afford?
2. Do you want to set up payments?
3. If so how long will it take to pay the ring off?
4. What will the rate of interest be?
5. What other bills will you and your fiance have as you start your life together?
6. Are you going to make another large purchase soon, such as a vehicle or a house?
7. Do you have job security?
8. Are you expecting a raise soon?
9. How important is an expensive ring to you or your fiance?

Once you've answered these questions, you should have a better idea of just how much you can and should spend on a ring.

Cheaper Alternatives

Remember, you don't have to spend your life savings to find the perfect ring. You do have other options, such as the following:

1. Find an antique ring at an antique store, auction, or estate sale.
2. Use a family heirloom as an engagement ring.
3. Choose another stone instead of a diamond.
4. If you really want the look of a diamond but just can't afford it, look into buying a moissanite stone.
5. Consider buying from a wholesale business online, but use caution.