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For something so tiny, an engagement ring is a big deal! According to “Australia’s Biggest Engagement Ring Survey” by Diamondport, Aussies spent $5297.50 on average for engagement rings in 2019 compared to $2579.65 a decade ago.
For most of us, a $5,000 expenditure requires some planning. You’ll need to prioritise, consider your options, and examine your cash flow. Fortunately, it’s possible to purchase a ring she’ll love without causing problems for your financial well-being.
Prepare your budget to buy an engagement ring by following these helpful tips.
Do you know how you spend your money each month? If you’re unsure, start recording all of your purchases. Better yet, use a budgeting app like Mint, which tracks your purchases and automatically sorts them into categories.
To save up for the engagement ring, reduce your spending in other areas. For example, if you currently dine out several times a week, eat at home and save the extra cash for the ring.
After examining your budget, you will probably find ways to cut spending. Divert the extra cash to a savings account, so you’re not tempted to spend it. You can make this easier by scheduling an automatic transfer from your chequing to your savings account. When you don’t have to make the transfer yourself, saving is less painful and more reliable.
An engagement ring is essential, but it’s probably not the only big purchase you’re making this year. After the engagement, you’ll probably have the wedding, honeymoon and possibly even a house to consider.
So put that ring into perspective. If you allow it to overshadow all of your other financial commitments, you could run into trouble down the road.
Before you think about going shopping, come up with a target amount you’d like to spend on the ring. Since you’ve already looked at your financial big picture, this targeted budget should leave enough room for other expenditures in your near future.
Although it seems counterintuitive, shopping with a budget actually gives you more freedom. You don’t feel so weighed down with an overwhelming selection, and you can enjoy the process instead of worrying about spending too much.
With so many enticing rings to choose from, it’s refreshing to narrow down the selection to a manageable group.
Once you’ve come up with a number, it’s time to create a timeline. The best way to get a handle on your stress is to make a plan with hard figures and dates. Quantify the purchase by time and cost, and then it will seem more manageable and achievable.
Let’s say you want to purchase an engagement ring that costs about $5,000 (close to the national average). If you give yourself six months to buy the ring, you’ll need to save $833 each month.
While you’re saving up for the engagement ring, spend some time learning about gemstones, precious metals, settings and styles. When you’re armed with basic jewellery knowledge, you’re more likely to make a good purchase.
If you’re looking for a diamond ring, get fluent in the 4Cs (carat, cut, clarity and colour). Learn about the properties and prices of different metals (yellow gold, white gold, platinum, palladium, silver, and more). Find out what kinds of styles she prefers and look at current trends. If you have a family heirloom ring, consider how it might be modified to suit your purposes.
When you find the perfect ring, protect your investment with Q Report Jewellery Insurance. No matter where you travel, the ring will be insured up to 150% of its value with a Q Classic policy. We provide complimentary revaluations each year, so you’ll always have peace of mind, knowing it’s fully covered.
To learn how affordable jewellery insurance can be, request a free, instant quote. You can also discuss our cover with your Q Certified Jeweller. When you purchase insurance straight through the jeweller, it’s protected from the moment you walk it out of the store.
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