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​Buying an engagement ring is one of the most important decisions and moments of life. Offering a diamond engagement ring to your soon-to-be wife is considered a tradition in many parts of the world.  While my blog focuses mostly on retirement decisions, I thought it was important to weigh in on something that’s a huge financial decision for most people.

Is it Smart to Finance an Engagement Ring?

Engagement Ring

As we all know it, engagement rings are not exactly something you can buy easily. The average price of a very basic diamond engagement ring is $5,000 in the United States, which makes it really hard for people to acquire it without burning a huge hole in their pocket.

I have seen many people saving months before buying an engagement ring. But what do you do if you do not have the liberty of saving money over that significant amount of time? What if you have decided to pop the question in the coming weeks but your financial situation isn’t good enough to buy an engagement ring?

In times like these, financing an engagement ring is the only viable option. We all know that sometimes this option can backfire and turn your life upside down with debt. Is it really a good idea to go under debt before starting your new life? Should you finance an engagement ring under these circumstances? I wouldn’t recommend it.

However, you’ll be glad to know that if you have indeed no other options available to you, then you can still make things work in your favor.

Luckily, there are literally hundreds of financing offers available through different financial institutions and diamond ring retailers. The key to making this work is to find the right offer.

I was scanning through my newsfeed on Facebook the other day and came across a diamond retailer offering a 0% APR financing on diamond rings. Now offers like these are rare and should be acquired immediately because these offers are like free money.

Recommended Reading:  See What Says About Financing Rings.

In other cases, I have seen people financing a diamond ring with 15% APR which leads to a huge debt that they have to pay for the next 5-7 years of their life. Unless and until you can afford that kind of monthly payments for the next many years, do not take an offer with a high APR.

Diamond rings are very precious gifts and they really do make a difference when it comes to impressing the woman of your life. However, when you look at the cost and your financial situation, it is sometimes a good idea to just skip ahead with the ring or go for the smallest possible ring and have it upgraded later.

Your best option is to either choose a good APR financing option or just talk to your spouse and make them aware of the problem. In fact, your spouse should be on the same page about your finances before starting your new life.

I have seen many marriages come to an end due to a shortfall in finances. It is one of the biggest reasons why people separate from each other. So I always recommend my friends to buy an engagement ring only if they can afford it through cash or get an attractive diamond ring APR financing option.

You may also like:  books about personal finance.

Tim Schmidt


A Florida-based Entrepreneur, Author, and Life Hacker, Tim Schmidt decided to take control of his retirement portfolio several years ago by setting up a self-directed IRA. This blog shares his thoughts and opinions on the top of retirement and investments. You can follow his career and travels on his Official Website as well as on his Instagram page.

Money MGMT.

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