How to Set a Budget for an Engagement Ring (2025 Guide)

It’s not just a piece of jewelry. It’s a symbol of forever, a promise, and the start of something beautiful.
So let’s talk real numbers, smart tips, and how to set a budget for an engagement ring that works for you, not a marketing myth.

Whether you’re just starting your engagement ring shopping journey or already planning to propose, this 2025 guide has everything you need to know.

Why Setting a Budget for an Engagement Ring Matters

We’ve all heard the “three months’ salary” rule. But let’s be honest — that’s outdated.
Created by De Beers decades ago, it was more about selling diamonds than love stories.

Today, your budget should reflect your values, lifestyle, and overall financial health, not someone else’s rules.

Setting a budget helps you:

• Stay confident when shopping for an engagement ring
• Make smart choices without going into debt
• Find a perfect engagement ring that fits your love story, not just a price tag

Step-by-Step: How to Set a Budget That Works for You

1. Know Your Finances First

Before you start browsing styles or comparing carat weight, take a clear look at your money situation.

Ask yourself:

• How much am I willing to spend right now?
• Should I pay upfront or consider financing options?
• What other expenses are coming up (like the cost of the wedding, or saving for a house)?

❤️ Tip: Many couples in Canada are choosing stunning lab-grown diamonds or unique types of gemstones. These give you major sparkle for a fraction of the cost of mined diamonds.

Read This: Most Expensive Diamond Shape: Which One Costs the Most?

2. Forget the "Three Months’ Salary" Rule

Seriously — let it go.

There’s no rulebook. Spend what feels comfortable and responsible based on your income, savings, and priorities.

Using a credit card might make sense for points or protection — just don’t stretch beyond what you can pay off.

Remember: the ring doesn’t have to cost a fortune to mean forever.

3. Understand What Impacts the Price of an Engagement Ring

The price of an engagement ring depends on several factors. Knowing these can help you set a realistic ring budget without surprises:

The 4Cs:

• Carat weight – Bigger stones usually mean a bigger price
• Cut – Affects how the diamond catches light and sparkles
• Clarity – The fewer the flaws, the more it costs
• Colour – Whiter diamonds = higher prices

Ring Setting:

A simple solitaire is often more affordable. Fancy halos or vintage-style ring designs may cost more.

Natural and Lab-Grown Diamonds:

Can’t decide between a natural diamond and a lab-grown one? Know this: lab-grown diamonds are 100% real and cost up to 50% less. Chemically identical. Just grown in a lab, not mined from the earth.

Gemstones:

Moissanite, sapphire, or emerald are gorgeous alternatives. You can still get a perfect piece with major sparkle, without maxing out your budget.

Metal Choice:

• Yellow gold – often more affordable
• Rose or white gold – mid-range
• Platinum – the priciest

Recommended: What Diamond Shape Looks the Biggest in Visual Size For an Engagement Ring?

4. Have an Honest Conversation with Your Partner

It’s totally okay to plan the engagement ring together. These days, many couples choose to buy a ring together to make sure it fits their style and budget.

Talk about:

• Design preferences: bold or minimalist?
• Ring materials: diamond versus Moissanite or gemstone?
• Are they open to custom ring design?

💬 Pro Tip: Some couples also split the cost. Love is a partnership — there’s no “should” when it comes to who pays for the engagement ring.

5. Set a Budget That Reflects What Matters Most

Whether your budget is $1,000 or $10,000, ask yourself:

• Does this ring reflect who we are?
• Will we still feel good about this in a few years?
• Are we making a smart choice for our future?

This isn’t just about the ring price — it’s about what’s behind the ring: your story, your love, and your future.

Must Read: How Does Diamond Shape Affect Its Price? Find Out Affordable Diamond Cuts!

6. Don’t Forget the Extra Costs

Your budget isn’t just the ring’s base price. Here’s what else to consider:

• Taxes (especially in Canada)
• Shipping and secure delivery
• Proposal-ready packaging or custom engraving
• Complimentary aftercare (included with SMC Diamonds!)
• Resizing or future maintenance

💡 Helpful hint: Many jewelers offer lifetime guarantees or cleaning services — make sure that’s included!

How Much Should an Engagement Ring Cost in 2025?

There’s no magic number, but in Canada, the average engagement ring cost ranges from $2,500 to $6,000.

But don’t feel tied to that range — many couples spend less and still find the perfect ring.

It’s all about finding a balance between what you love and what you can afford.

Budget-Friendly Engagement Ring Ideas

Trying to stay under $2,000? Check these out:

• Slim solitaire with a round lab-grown diamond
• Petite emerald-cut moissanite in yellow gold
• Unique sideways pear-shaped diamond ring
• Custom ring using a family stone
• Stacked bands or two rings with mixed metals

These styles are proof that you can get a beautiful ring on a budget.

Final Thoughts: It's About Love, Not Just the Price Tag

At the end of the day, the best ring is the one that makes your heart skip a beat, not the one that drains your bank account.

So if you’re planning to buy a ring, take your time.
Determine a budget, do your research, and take the next step with confidence.

Love is priceless.
But your ring doesn’t have to come with a sky-high price tag.