In 2016 the average cost of a wedding was $35,329, according to The Knot’s Real Weddings Study.
That price tag doesn’t include the honeymoon, but it does include the cost of the engagement ring. The average price of a wedding ring is $6,163!
Finding the right engagement ring is a challenge in itself. Knowing the best way to buy an engagement ring so that you can save money and be happy with your purchase will be much easier with these tips.
Whether you’re looking to save on your wedding with an intimate, scaled back wedding or have a giant blow-out, there are easy ways to save money when buying an engagement ring.
1. Have a budget before engagement ring shopping
Maybe you’ve heard you should spend 2-3 months of income on an engagement ring. Do you know where that number came from?
For over 50 years a company named DeBeers has had a monopoly on the diamond industry. They control the supply of nearly all diamonds sold, which means they set the prices.
And they have one goal – to get you to spend more. So that you spend more over your marriage, DeBeers even created advertisements for 10th-year anniversary and 25th-anniversary diamond rings. It’s a brilliant money making scheme.
How much should you spend on an engagement ring?
Here is a simple step-by-step process to use:
- Figure out how much you want to spend
- Spend that much
A good place to start is with a budget to help you with saving up for the big purchase.
You might want to save up 2-3 months of take-home salary, more, or less. Set a savings goal and work towards it.
2. Pay with cash
Cash is king when it comes to buying an engagement ring. You will get the best deal if you walk in with a pocket full of benjamins.
Please stay away from financing your engagement ring. Staying out of debt is the best way to kickstart your marriage.
You don’t want to be loathing your purchase for 36-months, same-as-cash, no-down-payment, no-interest.
Trust me; it’s not the same as cash. When you pay cash, you’re in a position to negotiate for the best deal. And negotiating will save you money.
Related: Negotiate like a pro to save money on your engagement ring.
3. Know your stuff
Before you head off to the jewelry store, spend a few minutes learning the basics of picking out a diamond. They are called The 4 C’s.
Watch this video that explains the Four C’s- cut, color, clarity, and karat weight.
At the least, ask you’re significant other what style diamond they want (or get their best friend to do some sleuthing for you). There’s a big difference between princess cut and round cut.
4. Review stores in advance
Where are you going to get the best deal?
Mass market stores will not give you the best deal, especially in malls. Malls have extremely high rent. Mall jewelry stores owned by nameless, faceless entities in other states that are in the business in maximizing profits.
If you know the store’s jingle from a T.V. or radio commercial, you’re going to pay more. Why? Because that’s a company that spends a lot of money on marketing – which you pay for.
A small, local jeweler that relies on referrals and word of mouth can save you money.
It’s like the difference between a credit union and a megabank. Mega-banks have nice marble and tile floors, great lighting, and nice furniture. Credit unions have utility carpet and are often kind of dingy. But they pass those savings on to you.
It’s pretty simple – if you walk in the store and feel like you’re part of lifestyles of the rich and famous, customers are paying for that.
5. Shop around
After you’ve done your reviews – commit to visiting at least three jewelers.
Some stores use high-pressure sales tactics to get you to buy. They know once you’re out the door you’re unlikely to come back.
Follow this advice: DON’T BUY TODAY.
Go on a fact and price finding mission, then sleep on it.
The good jewelers who have fair prices know you’ll come back. The ones that don’t will do everything in the book to get you to buy today. If that’s their game, you can be sure you’ll end up overpaying.
If you follow these tips for the best way to buy your engagement ring, you’ll be sure to pick a winner and save money in the process.
How To Get Started Investing
The international bestseller by CERTIFIED FINANCIAL PLANNER™ Scott Alan Turner. Choose the right accounts & investments so your money grows for you – automatically. No jargon, confusion, or pie in the sky promises. Just a proven plan that works.