Diamonds Are Forever – Well, So Is Debt

November 20, 2008 By Tisha (Kulak) Tolar

People many times end up in debt but start out with the best intentions. Their heart is often in the right place but their wallet is in another dimension. Take diamonds for example - everyone knows diamonds are said to be a girl’s best friend. This is one of the reasons many guys end up paying for that outrageous engagement ring for years and years and years to come, till debt do they part….

Buying an engagement ring is one of the major high points in a person’s life. It is emotional and exciting and can quickly get out of hand. The salesperson may tend to be a bit pushy or the recipient may have high expectations. Whatever the reason, many guys - and eventually married couples - will suffer from spending more than is reasonably affordable on the all-important diamond engagement ring.

Two Months Salary???

The misconception that you must spend two months worth of your hard-earned salary on the ring was a notion likely started by the owners of the diamond mines. There is no required pricing guide for engagement rings and the only true factor that needs considering is How Much Can You Afford to Spend. Diamond engagement rings are meant to be a token of your love but let’s face it - we can not put a monetary value on love. You can however put a price on the amount of monthly payments, late fees, and other penalties when you overspend on a ring, especially if that ring is on credit.

Here are some tips on the diamond engagement scenario so you can get what you want without getting taken for a ride.

Shield Thyself

Before stepping foot into a store, browse through the online version of your jeweler and see what you like and the going rates. If you find a few that you fancy, take the time to understand the pricing. From there, figure out an amount you can afford based on a straight cash payment or a payment plan. When you finally get face to face with the high-pressure sales force, you may be less likely to be guilted in to a less-affordable option.

Keep Expectations Realistic

If you have browsed the online store, you will likely have some idea of what it will cost for a ring you like. The pricing of diamonds will depend on the cut of the stone, the clarity of the stone, the size of the stone, and the color of the stone. You can do additional research online about the “Four C’s” to get the going rates in pricing. Consider the cost of the different ring and diamond styles that are within your budget. Be realistic about what you can afford and consider other important things you can do with the extra cash instead of going for the flashier ring.

Keep Your Options Open

While many couples still believe in full tradition when it comes to their engagement and wedding, many others have become more relaxed and would rather set their own traditions, making practicality a priority.

If you and your intended are not above a more frugal way of getting a ring, here are some other options you may want to consider:

•  Use a family heirloom. Perhaps your mom or your grandmother has a ring that can be passed on to the next generation. The cost of resizing a ring is drastically less-expensive than purchasing a brand new one.
•  Visit antique shops or pawn shops for rings. It may seem a bit out of the ordinary but one never knows what kind of treasures will be found in unexpected places.
•  Forget the diamond and choose another kind of stone. Maybe your bride-to-be has a favorite color or favorite stone other than a diamond. There is no rule that says an engagement ring has to be a diamond. Think outside of the box and save a lot of money that can be put to better use, say for a down payment on your first home.

Posted in budgeting, lifestyle, relationships, saving money

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