Once you decide you’re prepared to propose to that someone special, how much you may spend on the ring, whether you’re resetting a precious stone that is in your loved ones for generations or investing in a new one, is an individual decision. There’s a huge amount of advice out there, and a good amount of schools of thought, but there are no solid rules; ignore anyone who lets you know that you absolutely need to spend three months’ salary, or you need to spend some amount for every single year you’ve been together.
However much you choose to spend, though, it’s likely that it’ll be a whole lot – likely the priciest thing you’ve ever bought. When I proposed to my (now) wife, that was certainly the case – not counting school and grad school, of course.
One thing that’s for certain, though, is that you should not spend beyond your means. As you prepare to pop the question, and in a budget to do so, here are a few ways to purchase an engagement ring.
The first, & most obvious, is to save lots of up enough money and purchase it outright. However, there are reasons you may well not wish to accomplish this. For instance, you might like to keep a cash cushion in the event of emergency, instead of investing in spending it all simultaneously. After all, that is why persons finance things such as new appliances or cars.Another option is to finance the ring with financing arranged through your jeweler. Using loans to create major purchases and keep cash readily available could be a smart financial move, and perhaps, the loans made available from your jeweler may fit your preferences. However, other times they may well not have the best conditions or interest levels, and you generally won’t get any cash return or rewards on the purchase.Advertisement
Fortunately, there’s a third option, which is what I went with. Rather than taking out a normal loan, or financing a ring through a debit card proposed by the jeweler, you can open a fresh credit card which has a 0% introductory APR on purchases for some amount of time.
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When I purchased the ring, I opened a card that had that introductory APR for the first 15 months. That meant that rather than paying cash all at one time, I could charge the ring to the card, and pay it back over a little greater than a year and never have to pay any interest. As a good cherry at the top, I even got a signup bonus for opening the card, and cash return on the ring itself, that i could put right toward paying it off.Advertisement
It had been basically free money for purchasing the ring.
The main element is that you be sure to pay off the whole lot prior to the introductory APR ends and the standard one becomes effective. In my own case, I made a decision to be safe and divided the full total cost of the gemstone by 14. I paid that amount every month, and that way, I was finished paying down the whole thing per month early.
An excellent feature is that you have extra overall flexibility if you go this route. If you come into some supplemental income, or decide you want to just finish the payments from savings, you pays off the balance completely anytime.Advertisement
While there are many different cards offering introductory APRs, the main one I would pick now could be the Freedom Unlimited card from Chase.
That’s because furthermore to supplying a long 15-month term on the 0% introductory purchase and balance transfer APR (which rises to a standard 16.99-25.74% variable APR afterward), it includes 1.5% cash return on every dollar spent, and a sign-up bonus of $150 when you may spend at least $500 in the first 90 days of opening the card.
Put another way, in the event that you were utilizing the card to finance a $3,000 purchase, you’d get $195 total cash return.Advertisement
Plus, should you have reduced card from Chase, just like the Sapphire Preferred, Sapphire Reserve, or Ink Business Preferred, you can change your Freedom Unlimited’s cash return into Chase Ultimate Rewards points instead, and move those points to the premium card. That way, that you can do things such as transfer the points to frequent flyer partners, which is often a more lucrative way to utilize them than as cash return.
No matter which route you want to go toward spending money on the ring, that is an exciting time, nevertheless, you have a whole lot of research to accomplish. If you’re uncertain the place to start, Ritani offers numerous guides on selecting diamonds and settings, in addition to how to start actually purchasing the ring.