We hear stories all the time of how much money you should spend on a wedding ring, but what is the truth?
Consider What You Spent on an Engagement Ring
Depending on how you went about proposing, it is entirely possible you might have already faced in this question in the context of buying an engagement ring, too.
The traditional way of deciding how to buy an engagement ring – picking a ring the equivalent of one to three months’ wages – has for a while now been in decline. Instead, many adopt a pragmatic approach, with many couples even choosing an engagement ring together based on their budget. Yet, if you spent a small fortune on an engagement ring, it may be that you opt for a simpler wedding band, particularly if your partner will continue to wear both their engagement and wedding rings together. If you bought a simple engagement ring, that doesn’t necessarily mean you need to splurge on a wedding ring, remember that you have the wedding and the honeymoon to pay for too!
Now that you’re going ahead with planning your wedding, how much you spend on a wedding ring should really be something you decide together, as financial surprises are never a nice wedding gift.
Buy Within Your Budget
In the same way tradition is dying when it comes to engagement rings, we suggest you throw this out the window when it comes to your wedding ring, too.
Forget about arbitrary measures of how you should work out what you need to spend, simply look at what you can afford. Once you know how much you are able to comfortably spend on a wedding ring without blowing a hole in your wedding budget or putting yourself in financial difficulty, you can start to shop around. If when looking for wedding rings you and your partner start finding ones you like but that are outside of your budget, it is up to you whether you want to adjust your budget and look at different ways to cover the cost.
Now we know how you’re going to approach the buying of the ring, we can start to explore the different ways available when you’re going to pay for it.
How to Cover the Cost of a Wedding Ring
There are probably four options at your disposal for covering the cost of a wedding ring:
- You purchase a wedding ring out of your disposable income for a given month, or from your existing savings
- You save up monthly until you have enough money to cover the cost of the wedding ring you want
- You take out a finance plan with a jewellery retailer so you can pay for the ring in instalments
- You take out a personal loan so you can buy the ring now and repay at a rate you can afford over a period of up to seven years.
Let’s explore the pros and cons of each of these options.
Remember when working out how affordable any finance option is you should consider your net salary, not your gross salary. This article shows you how to work out your net salary.
Making Your Wedding Ring Purchase
For flexibility around what you borrow – particularly if you want to pay for your wedding and honeymoon at the same time – a personal loan is by far the best option. It’s hassle free, means you don’t have to put a savings target months into the future, and allows you to get on with buying your wedding ring and planning everything around your wedding, now.
Using your savings might immediately spring out as the best option at first – after all if you have the money you need, why not spend it – but depending on how much you had saved and what you’re saving towards it could take you years to save the same amount again, that’s without even factoring in unexpected expenses or emergencies, when we may need to rely on our savings.
From choosing how to buy your wedding ring to choosing how to pay for it, ultimately what you decide should come down to your own personal circumstances and your budget. Remember that when choosing a personal loan from NOW FINANCE you can get your rate before applying and also choose a loan based on your affordability and circumstances.
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.