5 Best Ways to Finance an Engagement Ring

Yellow Rose Carriages is the number one choice for proposals in Indianapolis. We have helped plan thousands of surprise proposals. Thus, we gained expertise in choosing most elements for a surprise proposal. We can advise on finding the best ring offers, what musicians to hire, where to get the most beautiful flower bouquets. Since an engagement ring is the most important purchase on the list, we’ve put together a small guide on financing it. Special thanks to Edward Jones for his expert financial advice in the matter.

Specialized wedding publications state that the price for an engagement ring varies between $1,000 and almost $6,000. The gap has an explanation. A more reasonable calculation ties the cost of a ring to how much you earn. That means you should pay at least the equivalent of a two-month salary on an engagement ring. Thus, if you make $45,000 a year, the engagement ring should be at least $7,500. If your monthly income is around $2,000, you should spend approximately $4,000 on a ring. The rules are not set in stone, and you are free to make your choice based on your budget estimate.

There are five popular ways to finance an engagement ring:

1. Start a savings account ahead of time.

   
   If you are in a long-term relationship, it’s reasonable to plan for a proposal. Setting aside monthly funds for an engagement ring will ensure your financial stability. First, you need to determine a comfortable price range. Secondly, you have to stick to the plan and set aside a fixed amount regularly. For example, let’s assume you intend to spend $5,000 on a ring in about a year. You will then deposit $450 a month to purchase the ring.

2. Get a personal loan

   
   If you have an acceptable credit score and want to propose to your partner in the near future, consider a personal loan. Most of these have a reasonable APR of 9.45%. You would take the money in one go, then repay it in monthly installments. Depending on your target loan and information, the application process may take a few days or even weeks. If you don’t qualify for an unsecured loan, other options are available with banks or credit unions.

3. Take a payday loan

   
   If you found the perfect ring and need money urgently, apply for a cash advance loan. Depending on your state of residence and loan type, direct lenders may offer you from $1,000 to $5,000. The interest rate on these loan products is between $10 and $30 for every $100 borrowed. Most people qualify and get their money in one business day.

4. Obtain a credit card loan

   
   Nowadays, most jewelry stores will allow you to apply for a store credit card. You may get an initial discount, but you will have to monitor the deferred interest. Other than that, you can go for a 0% APR credit card, such as one from the Bank of America. Some companies will offer reward points that you can use to pay off your credit card balance.

5. Earn more

   
   If you don’t want to get into debt, you can always take an additional shift at work or get a part-time gig. Earning extra income from investments or renting out property that you own are also reliable sources that can help you get the money for your ring. Additionally, you can sell new things that you have never used or organize a garage sale.
   We hope you get the money you need promptly, and your partner says “yes.” To make your proposal perfect, contact us to book a carriage ride. We will be more than happy to make your engagement memorable.