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How to budget for an engagement ring

How to budget for an engagement ring

Happy New Year, friends! We've survived the twenty-teens, and are entering a new and exciting period full of opportunity and change. Have you made any resolutions? We sure have. There's lots of research to show that kicking off a new habit or goal on New Year's doesn't necessarily ensure you'll succeed—but today is as good a day as any to endeavour towards your next big milestone.

Maybe, for example, like saving up for an engagement ring.

Vancouver engagement rings

Featuring our Aveline Ring captured by Brit Gill.

Like all sizeable tasks, saving up any sum of money for a big(ger) purchase can be intimidating. Then going out and choosing the ring itself can be another super stressful series of trials and errors. But let's worry about that later.

Breaking down big goals into manageable pieces is key. So let's approach planning your savings in a similar way. These are our top three best tips that are absolutely crucial when saving for your ring; these are sure to make the process as simple and painless as possible.

Start with a goal 

Pick your number. Do a bit of window shopping, talk to your partner about what sort of ring they might like, consult with a few experts (like us!) and work out the amount you want to spend on the ring. This is the first step.

Say you set a limit of $5,000, and you want to propose in the middle of next year, eighteen months from now. Assuming your ring might be made to order, we'll say you have sixteen months of saving time. $5,000 divided by 16 is approximately $312 per month; if you are paid bimonthly, you know then, that $156 needs to come off each of your paycheques. Now we have a schedule. These are the basics—now, it's off to the races.

(Of course, $5,000 is a sizeable sum for an engagement ring. The most important thing to remember is that your budget is personal, and you should feel just as confident saving and spending $1,000 as you would $10,000 on a ring. There's more to life than size!)

Vancouver engagement rings

Featuring our Rianne Ring captured by Brit Gill. 

Be strict

The hardest part about saving is actually saving. 

When every two weeks, that paycheck comes in, and $156 comes off every single time just to sit in an account—you might get discouraged or frustrated. But especially in the early days of your savings, you need to be strict. 

This is why we recommend you make a plan. It's unlikely, for most of us, that we just have a couple hundred dollars not already allocated. So you'll need to decide where that money is coming from specifically. Maybe you reduce the amount you spend on alcohol every month, or you go out for dinner less. Don't just expect the money to materialize when you need it—do the work to find out what a sustainable manner of savings looks like for you!

Vancouver sapphire engagement rings

Featuring our Josephine Ring captured by Brit Gill.

Finesse your savings structures

We do make fine jewelry, we're not bankers. But we are big fans of smart savings. Talk to your bank—yes, we mean actually talk to them—about your savings goals and discuss what products they have that will help you get there. Definitely look into high interest savings accounts, TFSAs, and cash back schemes (when used carefully!). See if you can lower the interest rate on your credit card in an effort to redirect portions of your payments; see if your bank has any promotional interest rates on savings accounts.

Also look in to automatic savings. Have the amount automatically moved from your paycheck to your savings account so that you don't have to think about it. Make use of schemes with your bank that will allocate the change to the nearest dollar on all of your purchases automatically. Tools like these will speed along the process and ensure you're able to make the most of your money.

Remember that the early days are the hardest, but as you get closer to your goal, your progress will only increase (see: compounding interest!). Before you know it, you'll have a nice shiny engagement ring in your pocket and all the nerves in the world, and then a very happy fiancé(e).

xo Evorden

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