Should You Take Out an Online Loan to Finance an Engagement Ring?

You've done the hard work of finding the one — now you're ready to commit and make your love known to the world. It's understandable to want to buy a nice engagement ring. Your partner is going to have it forever, after all, right?

But how far should you go with engagement ring financing? Here are a few things to consider before taking out an engagement loan.

How much should you spend on an engagement ring?

Some say the amount you spend on a ring should be roughly two months’ salary. Others say that love don’t cost a thing. No matter how much you decide to spend, you can either save up in advance or finance it, either via the jeweler or by using an online loan.

How to save on an engagement ring

You likely want to start the next chapter of your life together with as little debt as possible. If you take out a loan to finance the ring, that debt will eventually belong to your partner (if you intend to merge finances). With that in mind, use the tips below to save money on the ring of your soon-to-be fiancée’s dreams.

  • Know your audience - Some people know what they want in a ring, whether that’s a family heirloom or a particular style that's plastered on their secret Pinterest board. Based on the experiences in your relationship, you likely already understand how much your partner would find it acceptable to spend and how much might have them saying, "You spent what? Are you insane?"
  • Do your research - Anyone who goes into a jewelry store to ring shop without an idea of what they want or a firm budget is likely to get taken advantage of. Make sure to spend a decent amount of time online first to understand average prices. If you're undecided, the salesperson will likely start you with the highest-end rings available. 
  • Shop the sales - Shop for an engagement ring like you're purchasing a major appliance or new mattress. There are certain times of year — hello, slow summer months — where jewelry stores will run great promotions or offer extended 0% financing. Take advantage of these deals to get a more expensive ring for a fraction of the cost.
  • Remember the purpose - Shopping for and purchasing an engagement ring should be a time of joy and celebration. If you're stressing out over the cost, take a moment to remember why you're buying it in the first place. It's a symbol of the love you share with your partner. And even if you can't afford a lavish ring to start out, keep in mind that you can always upgrade later when your financial situation looks different.

While an engagement ring is a (hopefully) once in a lifetime, incredibly unique gift, it's still a significant expenditure and should be treated as such. Consider carefully before using a loan to buy a ring. And remember that paying for a ring in cash or spending a little less to make sure you can cover it is the path to a stress-free way to start off your engaged life together.

Notice: Information provided in this article is for informational purposes only. Consult your financial advisor about your financial circumstances.

Source: iQuanti, Inc.


Categories: Personal and Family Finances

Tags: Engagement Ring, Financial Services, Online Loan, Personal Finance