2 weeks ago, we launched a short survey to find out how much are we expecting to spend on an engagement ring. We have over 300 respondents (52% males and 48% females) in a week from around the region. Thank you for participating in this survey and sharing it with friends and family! The results came as a surprise to us, it is totally different from what we have in mind. Let’s find out how much should we spend on an engagement ring.
The Engagement Ring “Rule”
Have you heard of the “Insert number” Months’ Salary Rule for buying an engagement ring? The highest we have heard so far is 3 Months’ Salary rule. Going by this rule, if you have an annual income of $120,000, you will have to spend approximately $30,000 on your engagement ring!
More importantly, let us look at when and who set these rules. Turns out that the owners of these rules are diamond marketers who used them as marketing initiatives to improve their sales figures around the start of World War II in 1939.
The Average Cost of Engagement Ring in 2016
Fast forward to today, The Knot conducted their annual Real Wedding Study in 2016 to understand the costs of Wedding in the United States. The study also reveals that the average cost of an engagement ring in the US is US$6,163, which is approximately SG$8,200.
This amount coincides with our survey as well. The majority of the male respondents are willing to spend between SG$5,000 to SG$7,900 on their engagement ring. The graph below shows how much the respondents are willing to spend on an engagement ring.
The Ladies’ Expectation
To our surprise, the majority of the female respondents are expecting their partner to spend between SG$2,000 to SG$4,900 on the engagement ring. This is much lower than what the majority of the male respondents are willing to spend. In order to find out why, we interviewed some of the respondents.
Turns out that there is a mismatch of expectations. The guys usually set the budget based on what they thought is their partner’s expectation. One of the respondents said, “She looked impressed when she heard one of my friends bought an $8,000, 0.75-carat engagement ring, I thought that was what she wanted too.”
Majority of the ladies, on the other hand, feels that the design of engagement ring is more important than the size of the diamond. And they feel that the money can be put to better use during their wedding.
How Much Should You Really Spend on an Engagement Ring?
Forget the ‘rules’, forget the industry standard. The love that you share with your partner is unique and special, define your love by your own standards. When determining your budget, here are some of the more important things you should consider.
First, consider your current financial status. Will buying this engagement ring affects your financial situation negatively? Remember that what is yours will eventually be hers, including your liabilities.
Second, consider your partner’s expectation. Our survey has revealed a mismatch between expectations. The simplest way to find out your partner’s expectation is to ask her or her friends directly. And when you ask, forget about the price tag. The point here is to find out her ideal type and design of the engagement ring.
After you set your budget, learn how to optimize your budget by understanding the Diamond 4Cs. You can read more about the Diamond Cut, Diamond Colour, Diamond Clarity, and Diamond Carat Weight in our previous articles. Speak to us or book an appointment to visit our showroom to understand more about maximizing your budget and customizing an engagement ring that symbolizes your love for her!