You’ve found the love of your life and want to spend the rest of your life with them. You’re ready to make the leap and ask her to marry you. But in order to make your proposal a memorable one, you’ll want to give your special someone an engagement ring to symbolize your promise to marry one day. The thing is, engagement rings are incredibly expensive. You could realistically spend a couple of months’ worth – or more – of your income on this small piece of jewelry. Even though it’s likely the most precious gift you’ll ever buy for someone, the price tag is often too much for many people to be able to cover in one all-cash transaction.
Luckily, there may be other ways to finance this large purchase, with engagement ring financing.
Your Engagement Ring Financing Options
Just because the ring you have our eye on is a lot more expensive than what your bank account can currently cover, that doesn’t mean you can’t get it. There are financing options available that will provide you with the funds needed to buy that precious ring, including the following:
One way that you can obtain the funds needed to cover the cost of this larger expense is with a personal loan. You can apply for a personal loan with a lender for the amount needed to pay for the ring, then make installment payments to the lender – plus interest – until the full loan amount is repaid. Depending on the loan amount and your finances, the loan term can be as short or as long as it needs to be.
If you have a high credit card limit on your credit card, you may be able to use it to pay for your engagement ring. Just keep in mind, however, that the interest rates on credit cards are usually very high, so you will be paying a lot more in interest when repaying the credited amount. Further, racking up your credit card bill can be a dangerous thing if you’re not careful, as you could find yourself deep in a credit card debt cycle that can be difficult to climb out of.
If you’re going to use your credit card, make sure you don’t get stuck in the minimum payment trap.
Many reputable jewelry stores offer their own in-store financing programs to help customers buy extremely expensive items that are often difficult to cover with cash. Be sure to ask the store if they offer such programs, and if they do, find out what the interest rates are and whether or not you qualify. And be wary of any promotions they may offer, such as 0% for the initial period. You’ll want to find out what the rate will be once that introductory period ends as it could be a lot more than what you bargained for.
Friends and Family
You may want to consider borrowing from a friend or family member who is willing to extend a loan to you to make this important purchase. Just make sure you’re capable of repaying a loan in a relatively acceptable amount of time, or you could find yourself risking your relationship.
How To Save When Shopping For An Engagement Ring
Rather than take out a loan to purchase an engagement ring, you can take steps to save up for it. If time is on your side and you’re not in a rush to pop the question, you might want to take this avenue instead. Here are some tips to help you save money to buy your love an engagement ring:
Put away a percentage of your paycheck away every month – The more time you give yourself to save, the easier it will be to put enough away so you’ll end up with enough to cover the cost of the ring. To do this, put a little away every month into a dedicated savings account. Take out either a specific percentage or dollar amount from your paycheck every time you get paid, and over the course of a few months, you should have enough to buy the ring in cash.
Set up automatic savings – If you’re not disciplined enough to manually transfer a certain amount of money every month, consider automating your savings. Call up your bank and request to have a certain amount automatically transferred from your checking to your savings account every month.
For everything you need to know about automatic savings, check out this article.
Keep spending to a minimum – Consider sacrificing unnecessary expenditures temporarily until you’ve managed to save enough to buy that ring.
Now that you have a few tips on saving money for a ring, how can you actually save money when shopping for it? Consider these tips:
Wait for sales and discounts – Your significant other doesn’t have to know that you bought their ring on sale. Regardless, buying a ring when it’s on sale is a great way to save a few bucks. Keep your eye on jewelry stores in your area and wait for a sale to be advertised, then make your move.
Consider white gold instead of platinum – The actual metal part of the ring can make a huge difference in the price that you end up paying. Typically, platinum can be more expensive than gold. So, instead of opting for this precious metal, consider going with white gold instead to help you save quite a bit of money when shopping for your engagement ring.
Go easy on the carat weight – You’ve heard of 1-carat, 2-carat, or even 3-carat diamond rings, right? Well, every notch you go up in weight will cost you. The thing is, the carat weight won’t necessarily influence the beauty or value of the diamond. So, consider keeping carat weight low if you’re looking to save some money on this big purchase.
Is tying the knot financially beneficial? Take a look at this article to find out.
Before Financing An Engagement Ring, Consider This
If you don’t have the money to buy an engagement ring and have decided that financing may be the way to go, be sure to consider the following first:
Your budget – How much do you think you’ll really be able to afford when it comes to adding an extra payment to your financial obligations? Will your current budget allow for an extra loan payment every month?
Lifestyle – Is it really worth splurging on a super expensive engagement ring if it means you’ll have to make major sacrifices for months or even years while you pay the loan back? Is taking on a huge amount of debt worth it just for a ring?
Interest rate – Will the interest rate make things more difficult for you? Depending on the financing program you go with, the interest rate could be so high that it will make it difficult to repay the loan amount. Consider the interest rate that you’re getting and determine whether or not the ring is worth paying the price tag and the extra interest payments that come with a loan.
Choosing the Right Engagement Ring Financing Option
As discussed above, you have several options to choose from once you decide that financing an engagement ring is the right choice. If you’re ready to take out a loan to finance your engagement ring purchase, let Loans Canada point you in the right direction. We can match you with the best option based on your unique financial situation.