Financing a diamond

[archimedian]

Hello all,

I am 23 and am planning to propose to my girlfriend in about five months. I already know about what she wants in a ring and we have discussed it.

Going by the two month salary rule (assuming they mean net, and not gross) I should probably be spending somewher around $5k for the ring. I am planning on spending in the range of $3000-6000 (I want to leave it a pretty wide spread so I can get something that I know she likes).

The problem is, in just five months I will not be able to save up that amount of money.

How do people normally go about financing their rings? Charge it up on the credit card? Get a personal loan from the bank? Do you get financing from the jeweler (something like no interest for X amount of months)? Or, should I be fiscally responsible and actually wait to get the ring when I have enough saved up.

Thanks!

 

[mrbojangles]

It really depends on what you want to do. Most jewellers have credit services but do you really want to incur debt? Some stores have a layaway option where you pay x amount to put the ring on hold, and pay 3 or 4 equal payments over 3 or 4 months and then pick up the ring when everything is payed for.

As far as going into debt... do you really want to be paying off a ring while planning (and paying) for a wedding?

In my humble opinion, I would want the ring paid for when I give it to my girlfriend - for my own piece of mind.

If none of these are an option, there's nothing wrong with waiting until you have more cash available.

 

[fire&ice]

I vote saving for the ring.

That said, some credit cards will offer no interest until xx date if you transfer a balance. There are plenty of ways to get cheap money provided you have some credit to begin with.

 

[Mari]

Archimedian,
Congratualtions on your forthcomming engagement

I wouldn't feel tied in by the 2 month "rule".

It is an invention of Debeers, it used to be 1 month, and then it went to 2 figures.
The real golden rule I live by is don't spend more than you can afford. I love the sparklies, but I won't put myself in debt over them.

If you can't afford the big stone/ring now you can either by a ring in a simple setting and upgrade the setting later, or get a stone from a diamond dealer who has an upgrade policy, so you can get a bigger stone when you can afford it.

Mari

 

[hoorray]

wise words spoken by Mari.....

 

[glitterata]

I agree with everyone who says not to go into debt to buy the ring. Either wait until you can pay cash, or buy something less expensive--possibly at a place with a good upgrade policy.

What sort of ring does your girlfriend say she wants?

One idea is to buy the setting of her dreams and put a colored stone in it--a blue sapphire, say, or her birthstone, if she has a nice, not-too-expensive birthstone. Then when you've saved up enough for a diamond, buy one and swap it in. You could then put the colored stone in a pendant or another ring.

 

[Mara]

Definitely don't feel tied by the 2 month rule. Get what you can afford. If you don't want to wait until you have that $5k saved up, then get something that you CAN afford in 5 months. Possibly you can upgrade the stone or ring later if you don't want to wait to propose...assuming your gal would be okay with that in the future. Or if you can be patient, wait until you can save up the amount you want, e.g. a year.




I would not finance something like a ring because it's a luxury item and you don't want to pay exhorbitant interest rates. The one way I would do it is on a low-interest or 0% interest card which are very abundant right now if you have good credit, and they have them up to a year, so that would be one way to finance if you would have the amount within a year.




Just a few thoughts.

 

[DavidEmslie]

I am going to give you the same advise I have given to all of my customers, only spend what you are comfortable spending, and keep in mind, if you plan on getting married, there will be alot of unforseen expense comming up that you are not planing on yet. Its very important to budget things out for whats in your best interest...and dont do what some big company tells you should be in your best interest...especialy when that kind of money is involved. Do whats best for the both of you. keep out of debt, and enjoy a happy life together

 

[valeria101]

Agreed with the above too: jewelry is supposed to come as some extra when everything else is taken care of. There is much more about an engagement than the ring, believe me. And this will not turn out to n=be the most important expenditure either. It is likely that this is more imporatnt to you now than it will be for the recipient: planning to offer the ring must be quite a hard task (glad I am on the other side here, actually

) and one more credit card is not going to help.

By the way, what exactly do you have in mind for this ring?

 

[Jennifer5973]

Everyone's advice on this matter is very sage. Don't go into debt to buy jewely. It will feel SO GOOD to propose with a ring that is paid for.

 

[Nicrez]

True enough. My guy waited for that reason alone. We moved in together (no ring...GASP!) We had to spend a bit over $10K (what he had been saving for my ring) to get out of debt first. Credit cards are EVIL.... After there was no debt, and he had gotten his money in the bank, we started to LOOK.

Before then he figured it would be too painful if we didn't have the money. He was right. We found the right one, and wrote out the check that next day. It feels good to do that. Write the check, watch the money go, and still know you can eat more than bread and water...

I really do suggest that you not hurry this. If you are decided on a type of ring and the budget is firm, then so should your saving. Maybe a secondary job, like some people can create websites on the side, or sell their junk they don't use on E-Bay, maybe even offering manual help to people who need to move... Either way, when you know that money is earned and out on her finger that feeling of thankfulness and sacrifice on your part, is what makes the ring so welcomed.

I LOVE my ring knowing my guy had to stay at his old job he HATED for months, just to get it for me...I really appreciate that! Good luck and congrats on this step!!!!