Are you planning to finance your engagement ring? While financing options for an engagement ring are often considered risky, they can be a smart move if you are clever. Today I’m going to show you how you can avail financing options and be smart about it.
We already know the fact that an engagement ring is a major purchase of your coupled life. It is a huge decision that should never be taken lightly. So the first step should always be setting your budget. It doesn’t matter if you buy an expensive engagement ring, or an affordable engagement ring, it’s always an expense that will be major, so don’t take the approach lightly.
How to Decide if You Should Finance Engagement Rings
Setting a budget is completely a personal choice but it should always be influenced by your current financial situation. Don’t depend on the traditional ‘two months rule’ or the national average when it comes to buying an engagement ring. Instead, start with checking the prices of engagement rings through trustworthy diamond retailers such as James Allen.
Spending two months of your salary to buy the engagement rings is a very silly idea in 2019. This has mostly become an unrealistic option for people, thus you should never feel disappointed if you are unable to save two months of your salary. A more realistic approach is financing a ring and believe me, it isn’t always a bad idea to finance one.
Financing an engagement ring will allow you to immediately propose your girlfriend instead of waiting for months. It could also give you enough time to come up with a great strategy to pay off the amount of financing.
However, you still need to be smart about financing options. Let’s see how you can finance a diamond ring and be smart about it.
First things first, you need to start by determining the budget of the ring. This should depend on:
- Your current income
- Your current expenses
- How much can you save per month
- Your future financial goals
Saving up for a diamond ring is the best way to go. But at the time of marriage, we’ve usually not reached our best earning potential, unless of course, you are Mark Zuckerberg. At this time most of us are still paying off student loans and have other important financial commitments.
If this sounds like you, then financing an engagement ring is probably the only choice you have. Let me show you how you can be smart about it.
The best way to finance an engagement ring is to open up a new credit card with a 0% APR promotion package. Many banks often have this offer. Just make sure that you pay off the ring amount before the promotional period ends.
The second best way is to actually take a loan from a friend or family member. Usually, when it comes to marriage, your family or friends will gladly help you out. You can pay them off later without the worry of interest rates.
The third best option is to look for a jewelry store that offers in-store financing options. Many engagement ring retailers have great financing offers that have 0% deferred rate. Just make sure that you pay off the balance before the promotional period ends.