Gotta love that 2 months salary guideline...

[jcard71]

I was on the diamond is forever website and punched in my $81,500 a year
salary in the "2 month calculator" and it came up to over $13,000...Are they on drugs? What a marketing ploy...

I spent $7,000 on my GF ring and at first I felt like I should run back into the JSTORE and spend another $6,000, but the more I look at the ring I bought
the better I feel about it! I think she's going to love it and I didn't have to follow that 2 month guide line..

Anyone else feel obligated to spending 2 months salary? Or am I being cheap?

 

[Mara]

This would make a cool poll, because I don't think hardly anyone listens to that 2 months rule! If that was the case, my ring would have cost almost double. Ridiculous! I know that it's a well-known guideline but I would love to hear from people who actually budgeted beforehand based on their 2 months salary...gross right? Well I can see how people would calculate that out...and then realize that DB is INSANE...and drop it about 1/2...hee hee.

Not that there aren't days where I think wistfully...boy that would have been nice. Before I snap back to reality...and write out the new mortgage check!

 

[Diamond 4 Ever]

We didn't spend 2 months salary on the e-ring. At that time, the choice was either a house or ring. Of course we had to choose something that both of us can benefit from, the house!

 

[tawn]

We had about $6000 saved up...and ended up finding the perfect house instead! So we went for it, and about 3 weeks after we moved in, the Justice of the Peace came to the house and married us!

Got honeymoons on the 3rd (Bahamas), and 5th (Mexico) anniversarys...and am now ring shopping for the 10th anniversary in April! Finally!!!

Still have the Mortgage, cars, etc..., so it won't be close to 2 months salary either! But, we're going to design ourselves, so it will be special!

 

[hoorray]

I have a theory about the 2 months salary thing: It makes no sense for anyone. It's another DeBeers marketing campaign. Think about it. For those whose salary is on the lower end, there is no way they have the discretionary income to spend 2 months salary on a ring. What it takes to save to that level is too hard and that money should go toward things other than discretionary luxuries. There are many people here upgrading or just getting their first diamond after many years together, once they've knocked down all the necessities, and that's a great accomplishment for them!

For those on the higher salary end, 2 months salary can be a crazy amount of money to spend on one ring. (10's of thousands of dollars just because that's how the math works???)

Spend what you think you can spend, and what makes sense, without putting your future at risk. If you can, buy the ring that fits with you and your intended's lifestyles. Don't take on debt, don't deplete your savings. If this really is your life partner, there will be lots of things to spend money on in the future (houses, kids, vacations, retirement, gifts, luxuries, etc.....) There is plenty of time to buy diamonds, and that is part of the fun.....

 

[Shappy]

LOL if you think you're cheap, you haven't met my husband! He thought a replacement diamond would cost $1,000.
Seriously, I didn't spend anywhere near 2 months salary (or even near 1 month) although he never gave me a budget. It's all a marketing ploy. I just worry when the younger people read about people spending enormous amounts on these rings that they think its the norm--it isn't. My advice is--buy what you want to afford-don't use credit to finance something like a diamond.

 

[tessa]

that is a pretty scary guideline.

They should add.......

You have already qualified for a low-interest 18% credit card issued on the DeBeers Bank

 

[chris-uk04]

I, of course, had heard the two month’s salary , but knew it was coming from DeBeers. So I equated it to Ford saying that you should spend a year’s salary on your car. Two months gross salary is a lot of money to save up and takes a long time. I don’t think women, in general, truly appreciate what else the guy could have spend the money on.

So with the 2 month salary in mind, I started thinking about 1 month’s salary. Since then it may wind up somewhere in between, but with all the costs it IS closing in on the 2 month salary guideline real quick. This dilemma, I’ll have to explain in another post.

In short, I think a month's gross salary is a good value okay without being cheap.

 

[fuffi]

Didn't the 'guideline' used to be one month's salary some years back? Does anybody else remember this? I'm not that old but I seem to remember 15-20 years ago hearing ads proclaiming that.

 

[Nicrez]

Anyone who says two months gross is nuts, unless that is the kind of money you can throw around safely... I say a fair amount can be two months NET. After taxes, the amount is lower, and it is a little easier.

That to me, would be the HIGH range. Anything lower than two months net is good if you also want to save up for other things, weddings, house, credit card debt payoffs, etc...

So Jcard71, under my rule, your upper limit of e-ring spending would be $8,149, $8150 to be nice. You have spent well into that range, and I say you did well. Save your money for so many other expenses that will pop up unexpectedly! (at a 40% total tax rate)

If we didn't have to pay taxes, then i say we can keep all our $ and spend whatever we want on a luxury good that's a bad investment and yeilds no return! We do pay taxes, so our total yearly salary is NOT our own. The Net amount IS.

After expenses, you should save up as comfortably as you can (give yourself a year, if needed) and save when you have some extra. But then again, most people don't have saving, and instead have debt and I DO NOT recommend an e-ring until you are FREE and CLEAR of all debt. Debt on top of debt to compete with the Joneses is the way we all get in trouble and stay there... Just my $.04...

 

[fire&ice]

----------------
On 2/11/2004 1:00:58 AM lop wrote:

Spend what you think you can spend, and what makes sense, without putting your future at risk. If you can, buy the ring that fits with you and your intended's lifestyles. Don't take on debt, don't deplete your savings. If this really is your life partner, there will be lots of things to spend money on in the future (houses, kids, vacations, retirement, gifts, luxuries, etc.....) There is plenty of time to buy diamonds, and that is part of the fun.....----------------

Well said, Lop.

The rule is very simple - spend what you can *comfortably* afford. I'm living in our trip to England fund.

And, that trip came later & now we are looking into QM2 - which we can afford because our mortgage payment is so low. Think about it.

 

[jcard71]

Great Advice...I'm basically using my tax return money and
some cash I saved up. I just bought my house 2 years ago so I'm still paying mostly interest, but I also get a bigger tax refund because of it...I'm 32 and I shelter
10% of my income in a 401k and 3k a year in a ROTH. Yes, spending $7,000 was 1k over my budget,
but in the end I'm very happy with the ring and especially the size being over 2 tcw. I know she's not expecting a ring as nice as the one I bought.

 

[Kay]

----------------
On 2/11/2004 1:00:58 AM lop wrote:

I have a theory about the 2 months salary thing: It makes no sense for anyone. It's another DeBeers marketing campaign. Think about it. For those whose salary is on the lower end, there is no way they have the discretionary income to spend 2 months salary on a ring. What it takes to save to that level is too hard and that money should go toward things other than discretionary luxuries. There are many people here upgrading or just getting their first diamond after many years together, once they've knocked down all the necessities, and that's a great accomplishment for them!

For those on the higher salary end, 2 months salary can be a crazy amount of money to spend on one ring. (10's of thousands of dollars just because that's how the math works???)

blockquote>


That's just what I have always thought too. I think my guy spent about 1 month's salary (net of taxes), but the ring was exactly what I wanted -- there was no need to spend more to meet De Beer's guideline. The other month's salary went to our house remodeling fund, which is a much smarter financial investment given the rising value of California real estate.

 

[Kay]

----------------
On 2/11/2004 10:33:47 AM jcard71 wrote:

Great Advice...I'm basically using my tax return money and
some cash I saved up. I just bought my house 2 years ago so I'm still paying mostly interest, but I also get a bigger tax refund because of it...I'm 32 and I shelter
10% of my income in a 401k and 3k a year in a ROTH. Yes, spending $7,000 was 1k over my budget,
but in the end I'm very happy with the ring and especially the size being over 2 tcw. I know she's not expecting a ring as nice as the one I bought.

----------------

I applaud you on your retirement planning, but now that you have a house you need to do something about that tax refund. I know a lot of people enjoy getting a big refund check every year, but it is much better to adjust the number of exemptions on your W-4 so that your employer withholds less taxes from your paycheck each month and you have the money to use or invest during the year. If you are getting a large tax refund, that means you have paid too much in taxes and essentially made Uncle Sam an interest free loan for several months.

 

[Mara]

Yep definitely adjust that withholding after meeting with your taxman and then put that money into 6 month or 1 year bonds, or similar. Also, if you don't pay taxes into an impound monthly then you can do the same thing with your tax money for something like a 3 month bond if you pay 2ce a year or similarly. Make your money work for you as long as you have it in your possession.

 

[jcard71]

Thanks Kay, yes I'm changing my excempt status to reflect
that. Next year will be totally different...but it's nice to get the refund anayway, but you're right.

 

[powered BY espresso]

I ran into an old high school friend yesterday as I was checking out the local B&M's. Her ring was 1.5 carat, vvs and E color bought at the local mall. She said to me "Two Mos Salary". After pausing to think a few seconds, I said "wow, that would be a big ring". I felt kind of stupid afterwards. There is no way my fiancee would ware a ring approaching the 2 carat mark. My friend said her husband paid retail for her ring and that if she would of known that, she would of told him to go to the jewelery mart. And now she want's to upgrade. What was I supposed to say? She then said get a high clarity and color because that is what matters. She then said she would prefer quality to size. I really didn't know what to say. I did say her stone looked wonderful.

 

[sumi]

Hey! I always thought it was 3 months salary!

Well, either way, I wouldn't want my husband to spend that much on a ring. There are other more important things to spend our money on.

 

[Bagpuss]

I just worked out that we did spend just under 2 months take home salary on my upgrade ering (2ct OEC). To be honest, though, I'd never thought of the cost in those terms until I saw this thread.

If I felt a bit guilty about the cost of it when we bought it, I felt really naughty when I realised what a big chunk of our annual salary it actually was. However on the other hand, perhaps I shouldn't feel bad as we have been married 28 years, have no outstanding debts, the mortgage is almost finished and we've put 2 kids through private education.

We didn't spend that big a proportion of our income on my first e-ring either and that one lasted me over 26 years (I still have it too) so I think I got value for money the first time around.

I do love my new ring though, as does my husband, so I'm just going to keep on enjoying it and not obssess about what it cost!

 

[jcard71]

Sounds like you're in great shape...no need to worry!!!

 

[Mara]

What's funny to me is that people who don't know any better equate quality with color and clarity...when in reality you can have a horribly cut D IF and it doesn't mean quality. Quality to me is a great blend of the 4c's...with of course an emphasis on cut.

That's what makes the diamond sparkle & shine and that is what everyone gives the visual satisfaction.

 

[Kay]

Bagpuss --

If you have no consumer debt, the mortgage is almost paid off and your kids are through school, then you should not feel guilty at all about buying a ring you love.

 

[Rhino]

Who's gonna start the poll?

 

[pqcollectibles]

WHERE'S OUR POLLSTER????

 

[jqwest]

I think you are being cheap. I make less than half of what your salary is and I spent 4 months salary on the diamond I purchased. Give her the 2 carat diamond you know she wants it.

 

[jcard71]

----------------
On 2/12/2004 3:55:48 AM jqwest wrote:

I think you are being cheap. I make less than half of what your salary is and I spent 4 months salary on the diamond I purchased. Give her the 2 carat diamond you know she wants it. ----------------

MAYBE you need to read the post again...congrats to you for spending
4 months salary!!!!!!!!!!!

 

[PlatinumDiamond]

I didn't spend two months salary because I had no choice in the matter .... my wife just wanted a simple 950 Platinum Ru wedding band with quality diamonds and no e-ring...she saw one and fell in love with it at first site. I even took her shopping to look at more expensive ones, but she still wanted the first one. I tried convincing her to get an e-ring too. She said no to that.

Since then, like about a few weeks ago, she decided on a custom made 950 Platinum Ru Diamond/Sapphire e-ring to go along with her wedding ring because of some pics and posts of other e-rings that she saw on forums. That did it, now she wanted an e-ring. She loves and wears it constantly with her wedding band.

So for me, cost wasn't even considered, it was what she wanted. I never gave her a price limit, course if it would have been more than I could of afforded, I would have done some worring at that point.

Even when I was young, the traditional amount to be spent on a wedding ring and e-ring set was 2-3 months gross pay.

I got off cheap at a total of 3800 bucks on her rings, not that I wanted to only spend that much, but just because I was lucky!

 

[PlatinumDiamond]

I got off really cheap with my first wife ... back in 1978.
Her e-ring, wedding band, and my ring only came to $350 total. Back then though the cost of living was lower and I didn't make much at all, so to us at the time it was alot. Still, it wasn't 2 months salary or even close to it.

 

[aljdewey]

----------------
On 2/12/2004 3:55:48 AM jqwest wrote:





I think you are being cheap. I make less than half of what your salary is and I spent 4 months salary on the diamond I purchased.
----------------

See? It always devolves down into a "johnson" contest.

You spent four months salary???? I'm GLAD I'm not your fiance. To me, that's a terrible waste of money.

You call it cheap......I call it SMART.

 

[Nicrez]

Well DeBeers marketing has just proved to be the best ever!

Consider this: Diamonds are uselss. You can not eat them, you can not use them for anything but display. In the common carat size, they are NOT good investments. So what could possibly make anyone spend 2-3 months salary on this item? Marketing.

We have been told that if you LOVE someone, the best way to show it is with a mineral that has a regulated price well over it's worth, and marked up from mine, to siteholder to dealer to jeweler. But the bigger it is, the wealthier you'll appear and the more you "LOVE" your significant other. Please.

Yes people want nice things, but has anyone ever considered it commonplace to spend the same amount of money on say a nice leather bag she really wants? No. How about if she sais, please spend 2-3 months salary on a Ming vase for me? Better resale value, but diamonds are equated with luxury, lust, and love.

Please, but what you want and can afford, but don't adhere to the DeBeer's marketing. In the Us they marketed this as a 2 month salary, in Europe it was 1 month of your salary, and in Japan it's 3 months. This was based on marketing research that tested the market limit people would spend on a non-essential luxury good.

After all, "A Diamond is FOREVER..." - DeBeers