How Much Should I Spend on an Engagement Ring?

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How much you spend on an engagement ring to propose to your loved one is your personal choice.

A quick Google search highlights that an engagement ring could cost as little as $1,000 and as much as $50,000. Not everyone is able to afford Meghan Markle’s engagement ring or a diamond engagement ring from luxury jewelry brands such as Cartier, Tiffany & Co, De Beers or Graff.


Is There a Rule About What I Should Spend?


According to a piece of research conducted by Easy Weddings in 2018, Australian couples’ average cost of an engagement ring is $5,134. This is usually said to be around 2 months of the man’s salary.

There is no right or wrong answer. However, two months’ salary isn’t necessarily realistic (or wise), if you’re looking to save to get on the housing ladder or have a mortgage to pay. It’s unlikely your partner will want you to overcommit yourself by getting into a crazy amount of debt for the ring.


What Type of a Diamond Ring Should I Buy?


If you’re a man looking to buy an engagement ring for your partner, then you’re likely looking at diamond rings. While the saying “diamonds are a girl’s best friend” still rings true, walking into the jewellers or shopping online and simply searching for diamonds will leave you with a huge range of options.

Your future-wife-to-be will be likely to wear the ring every day from the day she says “Yes”. Therefore, you would want to consider her style and expectations to make sure that she’s happy with what you choose to buy.

So, what types of diamond rings are popular? To ease your decision, we’ve enlisted some of the popular types of engagement ring shapes for you (Vogue Australia, January 2019).

1.      Cushion Cut

Cushion cut diamond engagement rings are a great choice if your partner is likely to prefer something that will sit naturally on the hand and not stick out too far or be too prominent. Tasteful and romantic, such a cut gives you something different but with a nod to a classic, traditional engagement ring style and shape.


2.      Emerald Cut


If you prefer to buy something traditional and timeless and your partner is likely to appreciate the same, then you should choose an emerald cut engagement ring.

Offering a squarer shape than the cushion cut, an emerald cut diamond ring will sit more prominently on the hand. Such a style is coming back to prominence after years of Australians deliberately searching out styles that were different and unique, far away from what would be considered traditional.

If you’re looking for an engagement ring that won’t look outdated in 10, 20, 30 years’ time and beyond, then this is a great choice.


3.      Oval Cut


For hopeful fiancées to be who will be wowed by a contemporary style, an oval cut diamond engagement ring is a great choice. Where oval cut rings come into their own that their shape allows you to think about the “bowtie” around where the main centrepiece stones sit.

The “bowtie” section can also be diamonds or another stone depending on your taste and budget, and will allow you to make a ring appear “rounder” rather than just having a metal band affixed to an oval cut diamond.

4.      Pear Cut


Pear cut diamond rings are increasingly popular for a number of reasons.

In addition to the opportunity to embrace the “bowtie” as we mentioned above, pear cut diamond rings often offer more customisation and personalisation options.

Another benefit of opting for a pear-shaped cut is that the diamond itself is flatter, and will look bigger, whereas with a cushion cut, for example, you see less of the stone surface area because the diamond is deeper.


5.      Round Cut



Traditionally a favourite. Round cut diamond engagement rings became less popular in the early part of the 2010’s, as brides to be favoured styles that didn’t give the “huge rock on my finger”.

Round shapes are back in favour.

Whether you opt for a traditional round cut engagement ring or a customised version, you’re sure to be getting something classical and timeless.

Covering the Purchase of Your Engagement Ring


If you’re planning to pop the question but need help getting the extra funds to put a beautiful ring on your partner’s finger, then NOW FINANCE may be able to help you.

Our personal loans can be used to help you cover the cost of an engagement ring between $5,000 and $40,000 repayable over up to 7 years.

Once you have an engagement ring in mind, you can get your interest rate and check your estimated repayments prior to applying..


Disclaimer:  This article contains general comments and recommendations only. This article has been prepared without taking account of your objectives, financial situation or needs.  Before taking any action you should consider the appropriateness of the comments made in the article, having regard to your objectives, financial situation and needs. If this article relates to the acquisition, or possible acquisition, of a particular credit product you should obtain and consider the relevant disclosure documents before applying for the product.


Categories: Lifestyle, Weddings

Approved customers only. Terms, conditions, fees and charges apply. All applications are subject to NOW FINANCE’s lending and approval criteria. Settlement times may vary depending on circumstances. Loan repayment terms range from 18 months to 7 years. Interest rates range from 6.95% p.a. (8.57% p.a. comparison rate) to 17.95% p.a. (19.53% p.a. comparison rate).

*Comparison rates are based on a loan of $30,000 over 5 years.

^No fees apply only to approved loan amounts between $5,000 to $15,000. Other fees including late payment fees and dishonour fees may apply.

WARNING: This comparison rate is true only for the example given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

EXAMPLE: An unsecured personal loan of $30,000 borrowed for 5 years with the interest rate of 6.95% p.a. (8.57% p.a. comparison rate), would estimate to a minimum total amount payable of $36,883.60 via the weekly payment option (including a $495 establishment fee and $13 per month administration fee). Rates are subject to change.