Saving for an Engagement Ring - Tilted Forum Project Discussion Community

marcsantoli · 02-14-2005, 12:33 PM

Hey all. It's happening the great save is on to buy my girlfriend an engagement ring. I have about $1,500 saved so far but am looking to save a lot more over the next year. My question is what is a good investment that is only mildly risky and will give me a decent return over the next 12 months. I was thinking a muni-bond fund as it's tax free and are relatively low risk. CD's just aren't paying enough right now.

Anyone have any other ideas or know of any low expense muni funds?

--Marc

Averett · 02-14-2005, 01:10 PM

Personally I think $1,500 is plenty to spend on an engagement ring. But then again I know a girl who "visits" her $8,000 engagement ring at the jewlery store.

braisler · 02-14-2005, 01:27 PM

Yeah, I second that. $1500 should be more than enough to get you the ring. If she "needs" a bigger, better ring, perhaps you should save yourself a lot of pain and move on. If, instead, you want to save up to give her a particular really special ring, I wish you well.

I still think that you would be better served by saving that money for something else. Hey, at least you are doing better than lots of people out there who would just buy the ring now on credit and worry about paying it off later.

the_marq · 02-14-2005, 01:42 PM

The store where I bought my girl's ring lets you "upgrade" down the line if you are so inclined. IE, you can add a bigger diamond later for no charge (other than the difference between a .25 and .5 Carat gem for instance).

So in that way you can get a ring now and for some anniversary when you have your ther shit paid off you can surprise her all over again.

02-14-2005, 04:03 PM

I used to work in a small gold-smiths shop who did some very nice (expensive) work. I think that with 1,500 you can get a nice ring. It all depends on what your and her are expecting. Do you know what you want? Do you want to buy a Karat diamond 1.00ct? Around 1,500 I would say you are looking at a modest setting with a good diamond in the range of .25ct to .40ct.

I don't know if you have done much jewellery shopping in the past or want any advice but I would recomend getting a diamond with excellent color and cut and to save money compromise on the clarity, a good jeweller should be able to show you several diamonds in your price range and minor inclusions can be cleverly hidden in settings. No two diamonds are alike so do shop around before making a final decision.

If you are going to have a custom ring made consider purchasing your diamond elsewhere, perhaps a whole-saler if you have a connection, then take your diamond to a goldsmith to be set. Another excellent source of stones is antique stores (although be cautious and have an independant appraisals done if possible before purchasing) Used Jewellery is bought by antique dealers at .10 to .30 cents on the dollar for appraised value and diamonds are difficult to damage (other then chipping) If you do buy a diamond directly from a jeweller the markup will be aprox. 2/3 of its cost so their is usualy room to negotiate, more so if they will be producing a ring or setting the stone.

eribrav · 02-14-2005, 04:24 PM

Back to your original question.......I would put the $$$ in a money market. Short term rates are rising and you will capture that in a MM. You don't have enought to be buying munis.

BonesCPA · 02-14-2005, 05:47 PM

CD or money market. You don't want to risk any of it, and you can get a "solid" return.

la petite moi · 02-14-2005, 05:50 PM

1500$ is definitely enough my friend. Maybe save a little bit more for tax on a 1500$ ring, and then you're set. I know because my ring cost around 1800$ with tax, and it's absolutely GORGEOUS.

You don't need to put your money in any special account, I don't think. (At least, that's not what my fiance did.)

gar1976 · 02-14-2005, 08:42 PM

Shit, I spent $200 on the engagement ring for my wife. She still loves it.

If you get a chick who understands you're just starting out, that's a keeper. You get one who bitches about you being stingy? Watch out.

Bossnass · 02-14-2005, 10:00 PM

Buy whatever ring at whatever price you want to spend. I spent about $2700 all said and done and it was a good fit for my means and my wants. Don't let anyone tell you what is or isn't enough.

On the investment side, I would just drop it into a open GIC. Something you can grab out if the need arises (or if the 'buy ring now' urge strikes). Better then a savings account and allows for access.

Further, if you are planning on saving more, you can consider financing it. It isn't as bad as many people make it sound and many jewelry locations have reasonable in-house credit. I was approved for 0.7% (i12), which was about 8.7% effective (although I never actually used it). A good investment is an 8% return, so it worked for the diamond house, my visa rate is 13.99%, so it worked for me. When coupled with potential time period money shrinking (inflation, service charges for short term investments, etc), a low interest rate is a fine option. On 1500, you probably won't earn enough to make it worthwhile (you can probably pick up a shift or two to equal the earnings - two days work vs 365 days of investment). With a 1500 deposit, you have enough money to get a ring that will be worthwhile to you. If you can afford to 'save more', you can probably afford to make payments. Obviously, don't get into a situation you can't afford, etc etc.

Last point... I had decided to propose before I had started saving. I don't think I could have lasted an entire year waiting to pop the question if it would have taken me an entire year to save, and you have already been saving for a while. Can you last a year? Can she?

marcsantoli · 02-15-2005, 06:06 AM

Hey all, thanks for all of the advice. I make pretty good money and own my own home, and am proud to say the only CC debt I have is a BestBuy 0% offer. We both know we want to get married and we both have agreed to wait a year as her brother is currently engaged and planning a wedding. I think her mom would have a mental breakdown if she had to help plan 2 weddings at the same time.

So I asked my friend Google about GIC's. Are these like Government bonds that are guaranteed?

--Marc

777 · 03-16-2005, 02:44 PM

As far as investments go, I'd recomend a stock that pays you dividends. That way you'll can earn interset on the investment, as well as any money you gain should the stock rise in value.

lindseylatch · 03-16-2005, 03:37 PM

I think the "rule" for engagement rings is three month's salary. So, if you make $5,000 a month, you're good. In more ways that one!
I'm not sure I would want to beggar my b/f just so I could have a pretty rock on my hand...I'd much rather have a nice house, or lack of debt.
Anyways, CONGRATS on finding the woman you love!!

gar1976 · 03-16-2005, 07:44 PM

Quote:

Originally Posted by lindseylatch

I think the "rule" for engagement rings is three month's salary. So, if you make $5,000 a month, you're good. In more ways that one!
I'm not sure I would want to beggar my b/f just so I could have a pretty rock on my hand...I'd much rather have a nice house, or lack of debt.
Anyways, CONGRATS on finding the woman you love!!

Holy crap, the great diamond marketing machine got another one!

mokle · 03-17-2005, 12:57 AM

Quote:

Originally Posted by lindseylatch

I think the "rule" for engagement rings is three month's salary. So, if you make $5,000 a month, you're good. In more ways that one!
I'm not sure I would want to beggar my b/f just so I could have a pretty rock on my hand...I'd much rather have a nice house, or lack of debt.
Anyways, CONGRATS on finding the woman you love!!

Wait, you mean the ring should cost 3 months salary? Dayum, that's one hell of a ring

sillygirl · 03-17-2005, 09:06 AM

You could also take her 'looking' with you, and get a glimpse of what she's interested in and the price ranges for that. With 1500 bucks, you can get an absolutely beautiful ring. Save the other money for wedding costs.

tres · 03-17-2005, 09:34 AM

I've recetly bought a ring for my fiance ... luckily she is into simple things, and her ring (with the wedding band) was $1300. It's white gold with .5c of diamonds total. It's beautiful, and turns out it was the one she wanted anyway!! dude..its been said.. if she "needs" more than you can afford.... evaluate your "need" for eachother...

marcsantoli · 03-17-2005, 09:36 AM

i do well for myself i think. No Credit card debt, i am a homeowner, run my own side business and have a fulltime job. so affording the ring is not much of an issue.

just was trying to come up with a better way of saving for it is all.

Thanks everyone for the good advice! Keep it coming!

--Marc

wolf · 03-17-2005, 10:53 AM

It isn't how much you spend, it's the meaning behind it. I saved for years, and paid $3000, my wife loves the ring, really loves it, and has said that she'll never trade up. More than money is the emotion. We have friends who could only afford less than 1/4 carat, doesn't matter, they are happily married, and that is all that matters.

02-14-2005, 12:33 PM	#1 (permalink)
marcsantoli Upright	Saving for an Engagement Ring Hey all. It's happening the great save is on to buy my girlfriend an engagement ring. I have about $1,500 saved so far but am looking to save a lot more over the next year. My question is what is a good investment that is only mildly risky and will give me a decent return over the next 12 months. I was thinking a muni-bond fund as it's tax free and are relatively low risk. CD's just aren't paying enough right now. Anyone have any other ideas or know of any low expense muni funds? --Marc

02-14-2005, 01:10 PM	#2 (permalink)
Averett Is In Love Location: I'm workin' on it	Personally I think $1,500 is plenty to spend on an engagement ring. But then again I know a girl who "visits" her $8,000 engagement ring at the jewlery store. __________________ Absence is to love what wind is to fire. It extinguishes the small, it enkindles the great.

02-14-2005, 01:27 PM	#3 (permalink)
braisler Addict Location: Midway, KY	Yeah, I second that. $1500 should be more than enough to get you the ring. If she "needs" a bigger, better ring, perhaps you should save yourself a lot of pain and move on. If, instead, you want to save up to give her a particular really special ring, I wish you well. I still think that you would be better served by saving that money for something else. Hey, at least you are doing better than lots of people out there who would just buy the ring now on credit and worry about paying it off later. __________________ --- You do not really understand something unless you can explain it to your grandmother. - Albert Einstein ---

02-14-2005, 01:42 PM	#4 (permalink)
the_marq All hail the Mountain King Location: Black Mesa	The store where I bought my girl's ring lets you "upgrade" down the line if you are so inclined. IE, you can add a bigger diamond later for no charge (other than the difference between a .25 and .5 Carat gem for instance). So in that way you can get a ring now and for some anniversary when you have your ther shit paid off you can surprise her all over again. __________________ The Truth: Johnny Cash could have kicked Bruce Lee's ass if he wanted to. #3 in a series

02-14-2005, 04:03 PM	#5 (permalink)
NotMVH Guest	I used to work in a small gold-smiths shop who did some very nice (expensive) work. I think that with 1,500 you can get a nice ring. It all depends on what your and her are expecting. Do you know what you want? Do you want to buy a Karat diamond 1.00ct? Around 1,500 I would say you are looking at a modest setting with a good diamond in the range of .25ct to .40ct. I don't know if you have done much jewellery shopping in the past or want any advice but I would recomend getting a diamond with excellent color and cut and to save money compromise on the clarity, a good jeweller should be able to show you several diamonds in your price range and minor inclusions can be cleverly hidden in settings. No two diamonds are alike so do shop around before making a final decision. If you are going to have a custom ring made consider purchasing your diamond elsewhere, perhaps a whole-saler if you have a connection, then take your diamond to a goldsmith to be set. Another excellent source of stones is antique stores (although be cautious and have an independant appraisals done if possible before purchasing) Used Jewellery is bought by antique dealers at .10 to .30 cents on the dollar for appraised value and diamonds are difficult to damage (other then chipping) If you do buy a diamond directly from a jeweller the markup will be aprox. 2/3 of its cost so their is usualy room to negotiate, more so if they will be producing a ring or setting the stone. Last edited by NotMVH; 02-14-2005 at 04:07 PM..

02-14-2005, 04:24 PM	#6 (permalink)
eribrav Junkie Location: upstate NY	Back to your original question.......I would put the $$$ in a money market. Short term rates are rising and you will capture that in a MM. You don't have enought to be buying munis.

02-14-2005, 05:47 PM	#7 (permalink)
BonesCPA No. It's not done yet. Location: sorta kinda phila	CD or money market. You don't want to risk any of it, and you can get a "solid" return. __________________ Back into hibernation.

02-14-2005, 05:50 PM	#8 (permalink)
la petite moi Filling the Void. Location: California	1500$ is definitely enough my friend. Maybe save a little bit more for tax on a 1500$ ring, and then you're set. I know because my ring cost around 1800$ with tax, and it's absolutely GORGEOUS. You don't need to put your money in any special account, I don't think. (At least, that's not what my fiance did.) Last edited by la petite moi; 02-14-2005 at 05:53 PM..

02-14-2005, 08:42 PM	#9 (permalink)
gar1976 Custom User Title Location: Lurking. Under the desk.	Shit, I spent $200 on the engagement ring for my wife. She still loves it. If you get a chick who understands you're just starting out, that's a keeper. You get one who bitches about you being stingy? Watch out. __________________ Blistex, in regards to crappy games - They made pong look like a story driven RPG with a dynamic campaign.

02-14-2005, 10:00 PM	#10 (permalink)
Bossnass Détente Location: AWOL in Edmonton	Buy whatever ring at whatever price you want to spend. I spent about $2700 all said and done and it was a good fit for my means and my wants. Don't let anyone tell you what is or isn't enough. On the investment side, I would just drop it into a open GIC. Something you can grab out if the need arises (or if the 'buy ring now' urge strikes). Better then a savings account and allows for access. Further, if you are planning on saving more, you can consider financing it. It isn't as bad as many people make it sound and many jewelry locations have reasonable in-house credit. I was approved for 0.7% (i12), which was about 8.7% effective (although I never actually used it). A good investment is an 8% return, so it worked for the diamond house, my visa rate is 13.99%, so it worked for me. When coupled with potential time period money shrinking (inflation, service charges for short term investments, etc), a low interest rate is a fine option. On 1500, you probably won't earn enough to make it worthwhile (you can probably pick up a shift or two to equal the earnings - two days work vs 365 days of investment). With a 1500 deposit, you have enough money to get a ring that will be worthwhile to you. If you can afford to 'save more', you can probably afford to make payments. Obviously, don't get into a situation you can't afford, etc etc. Last point... I had decided to propose before I had started saving. I don't think I could have lasted an entire year waiting to pop the question if it would have taken me an entire year to save, and you have already been saving for a while. Can you last a year? Can she?

02-15-2005, 06:06 AM	#11 (permalink)
marcsantoli Upright	Hey all, thanks for all of the advice. I make pretty good money and own my own home, and am proud to say the only CC debt I have is a BestBuy 0% offer. We both know we want to get married and we both have agreed to wait a year as her brother is currently engaged and planning a wedding. I think her mom would have a mental breakdown if she had to help plan 2 weddings at the same time. So I asked my friend Google about GIC's. Are these like Government bonds that are guaranteed? --Marc

03-16-2005, 02:44 PM	#12 (permalink)
777 drawn and redrawn Location: Some where in Southern California	As far as investments go, I'd recomend a stock that pays you dividends. That way you'll can earn interset on the investment, as well as any money you gain should the stock rise in value. __________________ "I don't know that I ever wanted greatness, on its own. It seems rather like wanting to be an engineer, rather than wanting to design something - or wanting to be a writer, rather than wanting to write. It should be a by-product, not a thing in itself. Otherwise, it's just an ego trip." Roger Zelazny

03-16-2005, 03:37 PM	#13 (permalink)
lindseylatch Addict Location: Seattle, WA	I think the "rule" for engagement rings is three month's salary. So, if you make $5,000 a month, you're good. In more ways that one! I'm not sure I would want to beggar my b/f just so I could have a pretty rock on my hand...I'd much rather have a nice house, or lack of debt. Anyways, CONGRATS on finding the woman you love!! __________________ "Those who can make you believe absurdities can make you commit atrocities" "If God did not exist, it would be necessary to invent him." "It is dangerous to be right when the government is wrong." -Voltaire

03-17-2005, 09:06 AM	#16 (permalink)
sillygirl Newlywed Location: at home	You could also take her 'looking' with you, and get a glimpse of what she's interested in and the price ranges for that. With 1500 bucks, you can get an absolutely beautiful ring. Save the other money for wedding costs. __________________ Anyone can be passionate, but it takes real lovers to be silly-Rose Franken ....absence makes me miss him more...

03-17-2005, 09:34 AM	#17 (permalink)
tres Insane Location: Long Island, NY	I've recetly bought a ring for my fiance ... luckily she is into simple things, and her ring (with the wedding band) was $1300. It's white gold with .5c of diamonds total. It's beautiful, and turns out it was the one she wanted anyway!! dude..its been said.. if she "needs" more than you can afford.... evaluate your "need" for eachother... __________________ "Its better to be hated for who you are, then loved for what your not" --Van Zant "Tell me and I forget. Show me and I remember. Involve me and I learn."

03-17-2005, 09:36 AM	#18 (permalink)
marcsantoli Upright	i do well for myself i think. No Credit card debt, i am a homeowner, run my own side business and have a fulltime job. so affording the ring is not much of an issue. just was trying to come up with a better way of saving for it is all. Thanks everyone for the good advice! Keep it coming! --Marc

03-17-2005, 10:53 AM	#19 (permalink)
wolf Ravenous Location: Right Behind You	It isn't how much you spend, it's the meaning behind it. I saved for years, and paid $3000, my wife loves the ring, really loves it, and has said that she'll never trade up. More than money is the emotion. We have friends who could only afford less than 1/4 carat, doesn't matter, they are happily married, and that is all that matters. __________________ Thousands of years ago, cats were worshipped as Gods. Cats have never forgotten this.