You’ve been on several dates, and you’re sure your special someone is “The One.” You want to express your love by proposing with an exquisite diamond engagement ring. But there’s one problem: You don’t have the money saved yet. 

Stashing away enough money to buy an engagement ring is no small feat. But don’t despair! All you need is a little bit of strategic planning and some smart money-saving strategies. 

Below, you’ll learn below seven smart ways to save money for an engagement ring and how Accrue Savings can help make saving effortless.

The traditional rule of thumb is to save two to three months’ salary for an engagement ring — at least, that’s the rule coined by DeBeers in the 1940s. This means if you make $5,000 a month, you should save at least $10,000 for an engagement ring. Unfortunately, deciding how much to spend at a jeweler based on your salary isn’t the best idea. After all, everyone’s financial situation and spending habits vary widely.

The average cost of an engagement ring in the U.S. is $5,225, but most couples spend between $1,000 and $5,000. How much money you spend on the perfect ring will depend on the Four Cs: cut, clarity, color, and carat weight.

• Cut: It’s the symmetry or angles and proportion of the diamond. It affects the brilliance, fire, and sparkle of the stone. Cut grade is only awarded to round diamonds.
• Clarity: Refers to the presence or absence of inclusions, small imperfections invisible to the naked eye that occur during the natural formation of the diamond. The GIA (Gemological Institute of America) grades clarity on a scale from flawless (FL) to included (I3). The fewer inclusions, the higher the clarity grade and rarity of the diamond.
• Color: Refers to the absence of color and is graded on a scale from D (colorless) to Z (light yellow). Colorless diamonds (D-F) are rare and the most expensive.
• Carat weight: Refers to the weight of the diamond, not its size, and is measured in carats. One carat equals 0.2 grams, and prices increase exponentially with carat weight.

It helps to create a realistic budget based on your finances and not an arbitrary two-month salary figure. You should involve your fiance and discuss in advance how much you both are comfortable spending on the ring.

Lab-grown diamonds cost up to 40% less and are chemically, physically, and optically the same as natural mined stones. Ask for diamond certifications at the jewelry store for every stone to guarantee authenticity. The retailer will provide a GIA certification for natural diamonds or an IGI (International Gemological Institute) certification for lab-grown stones.

You can use a credit card as a financing option, but only if you can pay off the full statement balance by the due date. A credit card provides access to revolving credit and rewards points for your big purchase. 

Unfortunately, credit cards open up the risk of paying more in interest fees if the balance isn’t paid off on time. Late payments and defaults will hurt your credit score, and it won’t be easy to obtain a loan at competitive rates in the future.

If you must purchase with a credit card, compare annual fees, APR rates, reward points programs, and sign-up bonuses. 0% APR credit cards are ideal for large purchases. They provide an introductory period of 12 to 24 months interest-free, and some come with rewards points or cash-back options.

No, you should not take out a loan to buy an engagement ring. Loans come with high interest rates and incur hidden costs like processing fees, late payment penalties, and default fees. It defeats the purpose of savings altogether and can potentially put you into debt. Also, lenders have strict approval requirements, and it may be difficult to qualify with a low credit score. This can derail your plans for a surprise proposal and leave you embarrassed.

The best option is to save money over time and pay cash for your purchase. Buying the perfect engagement ring for your fiance in full without any debt brings a sense of accomplishment and pride. You will start your married life free from debt and on the right financial footing.

Saving money for an engagement ring requires adopting healthy saving habits and cutting unnecessary expenses. Diamond prices fluctuate depending on market conditions, and you should be prepared with enough money saved up to purchase the ring when the time is right. Follow these seven tips to save money for your engagement ring.

1. Use a savings platform like Accrue Savings

Saving money seems like a no-brainer, but it’s not always that easy. You have daily expenses, bills, and other financial obligations that can make it hard to find extra money to save. Accrue Savings is a unique savings platform that makes it easy to save for large purchases over time. 

You only need to create a savings goal (in this case, an engagement ring), decide on how much money you want to save each month, and set up automatic deposit transactions from your bank account into your Accrue wallet. Your funds will be securely held in an FDIC-insured bank, and you can access your savings anytime. 

Accrue Savings has partnered with leading jewelry brands, including Everelle, Friendly Diamonds, The Clear Cut, and Kiefer, offering a wide selection of engagement and wedding rings at competitive prices. As you save up, these brands will contribute a percentage of your savings amount toward purchasing your ring, speeding up your savings goal.

2. Set a budget and start as early as possible

Last-minute purchases are stressful and expensive. You might settle for a lower-quality diamond due to cost constraints or, worse, take out a loan and incur high interest charges. Set yourself up for success by starting to save as early as possible. 

Create a realistic budget that outlines your income and expenses, list your financial priorities, and decide the amount of money you can save each month without stretching yourself thin. Track your expenses, cut out unnecessary purchases like eating out, streaming services you no longer need, and other luxuries to free up more money for savings. 

The 50/30/20 budgeting rule is a great starting point. This budget allocates 50% of your after-tax income to needs, 30% to wants, and 20% to savings. Automate your savings to reduce the temptation to spend and give yourself a head start.

3. Open a high-yield savings account

Opening a high-yield savings account is a quicker way to save for your engagement ring. High-yield savings accounts offer higher interest rates, usually 10 to 12 times more than traditional savings accounts. 

You can withdraw your money using an ATM card any time, and the accounts are FDIC insured up to $250,000, so you don’t have to worry about losing your savings in case of a financial emergency. 

It’s essential to do your research when selecting an account. Compare annual fees, interest rates, initial deposits, minimum balance requirements, and transaction limits. Also, check out their customer service record to ensure they are reliable. You don’t want to be stuck with a provider with long wait times or unresponsive customer service.

4. Ignore antiquated social norms

“Spend a two-month’s salary on the engagement ring” or “spend the national average on it” are outdated social norms that don’t consider modern-day financial realities. Your lifestyle, budget, and savings goals will determine how much you can afford to spend on an engagement ring. 

Don’t finance a purchase with debt or break the bank just to keep up with the Joneses. Buy the ring you can afford and focus on creating a memorable proposal your fiance will cherish forever. As long as your genuine intentions come through, your loved one won’t care how much you spent.

5. Consider a variety of stones and gemstones

Natural diamonds carry a higher price tag, but there are more affordable alternatives that retain the same brilliance, sparkle, and beauty. These include:

• Lab-grown diamonds: These are manufactured in the lab using highly advanced technology and cost up to 40% less than natural diamonds. They are conflict-free and identical to natural diamonds in chemical composition.
• Moissanite: A naturally occurring mineral made of silicon carbide. It has indistinguishable brilliance, sparkle, and intense fire from natural diamonds but is much less expensive. Its high refractive index reflects light in a dazzling rainbow of colors.
• Sapphire: Sapphires are beautiful hard stones that come in various colors, like blue, green, pink, and yellow. They are durable, scratch resistant, and more affordable than diamonds.
• Rubies: These exquisite gemstones are becoming increasingly popular as a center stone for engagement rings. They carry deep red hues that look stunning when set on yellow gold. Their timeless beauty and affordability make them a great alternative to traditional diamonds.

Gemstones offer the perfect balance of affordability and quality, allowing you to purchase a stunning engagement ring within your budget. Smaller or lower-quality diamonds can also be a great option since they cost less and still have all the beauty of larger stones.

6. Surprise with the proposal, not the ring

It is important to talk with your partner about what type of ring they want for the engagement. This way, you can ensure that the ring you buy matches what they like and makes them happy. Remember, they will wear this ring for the rest of their life, so it should reflect their taste and personality. 

You can always surprise them with the proposal itself, like popping the question during a romantic dinner or once-in-a-lifetime getaway to their favorite destination. They won’t care about the size of the ring when they see how thoughtfully you planned the proposal! 

Miscommunication or hidden expectations can lead to disappointment, so talk to your partner openly and honestly. It will also help you save money by not buying something too expensive or something that isn’t their style.

7. Save on your big purchases

Saving on big purchases helps you develop sound financial habits and puts more money back in your pocket. Plus, nothing equates to the joy of paying for big-ticket items with cash upfront — debt-free. Accrue Savings makes saving easy, secure, and rewarding. 

Setting aside as little as $25 per month helps you reach your savings goals faster and builds credit for a stronger financial future. Big purchases you can save for with Accrue Savings include travel, jewelry, health and wellness, fashion and apparel, and auto. You will also save up to 20% more on your purchase by shopping with our partnering brands.

Save for your engagement ring faster than ever with Accrue Savings

Adopting the right money-saving strategies can make saving for your engagement ring a stress-free and enjoyable experience. Create a realistic budget early on, open a high-yield savings account, ignore antiquated social norms, and consider a variety of stones and gemstones to get the most value for your money. 

You can also save on your big purchases with Accrue Savings for an easier path to achieving your dream engagement ring. Our platform’s automated savings and rewards make it a no-brainer way to save for your upcoming purchase. Shop from the following partners for exclusive deals:

• Everelle: You will earn 8% directly into your savings account when you register and shop at Everelle. When you’re ready to purchase, you will receive a virtual debit card preloaded with your savings and rewards.
• Friendly Diamonds: Save 3% of your engagement ring cost by shopping at Friendly Diamonds. Browse their extensive collection of engagement rings and wedding bands to find the perfect piece for your loved one.
• The Clear Cut: Earn 5% when you shop at The Clear Cut. Select from various styles and settings like solitaire, halo, and pavé to find the ideal ring for your fiance.
• Kiefer: Pay 10% less for your engagement ring when you shop at Kiefer. Create an account, fund your wallet, and track your progress. Kiefer will provide a preloaded virtual debit card you will use to make the purchase.

Create a free Accrue Savings account today and take the first step toward a solid financial future when you shop with our partners.