You’ve finally decided that she’s “the one,” and you’re ready to pop the question. There’s only one problem: you don’t have enough cash to buy the engagement ring.
You’re in a bind. Should you finance an expensive ring that she’ll love, save money and postpone your engagement, or buy a smaller ring that you can afford?
There are pros and cons to all three of these options. Let’s take a look.
Finance a Ring
Sometimes love makes us do crazy things. And, since the average price of an engagement ring hovers right around $5,500, financing may seem like a good option. The pro is obviously getting your girl a ring that will bring her to tears (in a good way). It comes at a high cost, however.
While some jewelers do offer low-interest financing, you’ll still be faced with a pretty high monthly payment for several years. Even worse, if you put the ring on your credit card, you could be paying an astronomical 20 percent in interest. Unless you tackle the debt quickly, you’ll end up paying much, much more for the ring than it’s actually worth.
Financing a ring will mean starting your marriage with added debt. Since money issues are one of the biggest marital problems, financing a ring could get your impending marriage off to a rocky start.
Save for a Ring
Depending on the amount you need for the ring, saving up cash could take you quite a while. This means delaying your engagement until your ring fund is complete.
While this isn’t always the most enjoyable route to go, it’s smart financially. However, love and smart financial decisions don’t always go hand in hand.
If you’re ready to get engaged now — but don’t want to go into debt — the next option is a better fit for you.
Buy Small Now & Big Later
If you’re not thrilled with either of the options above, you could buy a smaller, less expensive ring now, then save to buy a more extravagant ring in the future.
If you’re able to openly communicate to your love, this shouldn’t be a problem. You can satisfy your need to propose now — and promise her the ring of her dreams later. Just make sure you keep your promise.
This option will also give you plenty of time to look at rings, compare prices, and figure out what the best deal is.
Getting engaged will be one of the most exciting and memorable times in your life. If you want to start your marriage out on a solid financial foundation, then financing a ring isn’t for you. With patience and hard work, you can meet in the middle and enjoy the best of both worlds.
In the end, the only thing that should matter is your love for each other — not how much you spend on a ring.
What do you think about financing engagement rings?