How much money should you spend on an engagement ring?

It can cost as much as you want to spend on it. Engagement rings can cost anywhere from $500, $5000 to even $50,000. Factors such as the carat, color, clarity and cut of the diamond as well and whether it is made in yellow gold, white gold or platinum also have an impact on the cost.

There used to be a theory that a man should spend three month's salary on an engagement ring for his fiance. So if you were to make $2,000 each month, then $6000 is what you should spend on an engagement ring. Nowadays, that theory is not necessarily adhered to any longer.

When looking at how much to spend on an engagement ring you need to look at how much you can really afford. Are you able to finance the ring? Do you want to make monthly payments are do you want to pay the ring off all at once? These things will all factor into how much you should spend on your engagement ring.

My advice is to first go window shopping for engagement rings. Take a look at what you would like to buy for your fiance-to-be and then start saving for that ring or you can decide to finance the ring if you can afford it. When financing, also make sure to find a reliable source, and look into different places. Be careful online, and only use reputable sources, such as a site like Prosper.

personal note:

If the engagement isn't going to be a surprise, I suggest simply asking. My wife actually picked a $59 engagement ring. While it made some people think I was cheap, it turned out that a big gem on her finger would have gotten in the way at work. For that same reason, we actually have the same wedding ring in two different sizes which cost less than $700 total. For the record, I had actually saved up several thousand dollars for an engagement ring.