How to pay for the e-ring purchase...

[ChloeTheGreat]

As some of you are not yet engaged, I am wondering how price comes into your diamond shopping experience. I just read through a very heated debate in another PS forum about what is an appropriate amount to spend.

I was thinking financing the purchase would be the best way for my boyfriend and I to go, but after reading some other opinions, I''m not so sure.

To the Ladies in Waiting that are involved in the shopping for/purchasing of your engagement ring...are you and your significant others planning to finance or pay cash? I would love some input! Thanks!

 

[So Excited]

I think it completely depends on YOUR means/funds you have to spend.... Don''t overextend yourselves to have that "Dream Ring" if it isn''t reality for where you are in your lives.

 

[neatfreak]

It''s never a good idea to finance a luxury purchase unless you are using a CC or something just for the points and will pay it off that month. Just not worth it IMO.

 

[ChloeTheGreat]

Agreed. Thanks for the response! I am trying to find the balance between what I want and what I can stomach spending on this kind of purchase. Whether I finance the ring or pay cash, the CREDIT CARDS are getting paid off FIRST!

Darn that convenient plastic! (Which is what I''m trying to stay away from when we buy my diamond!)

 

[LilyKat]

I say what you can afford = what you can afford to pay in cash. This is especially so regarding luxury purchases. We (by which I mean my SO) are buying my ring in cash. Personally it would lessen my enjoyment of the ring knowing we could not really "afford" it and part of it still belonged to the store! Luckily what I want is well within budget, but if we couldn't afford what I really wanted, I would either:

- choose something less expensive
- offer to contribute myself (I'd be very happy to do this)
- wait until he had more saved, if HE was happy to do this and use his money for this purpose

Of course, that's just my opinion! I do have a credit card but only use it for security purposes in online purchasing, it gets paid off within about five minutes.

Try exploring other options to get what you really want. Would your SO let you contribute towards it (if you want to?) Would it be less expensive and just as good with a different metal (eg palladium rather than platinum)? A different store? Keep looking and saving until you find something you adore that's also within budget.

 

[vc10um]

I''m also in the "what you can afford = what you can pay in cash" camp, and so is my SO. And I certainly wouldn''t put the ring on credit, unless you can pay it off right away and are just doing it for points/miles/etc, since interest rates are through the roof right now. However, I''m also not the type to say "nay" to someone who takes advantage of, say, a B&M''s financing plan. I just don''t think using a CC without being able to pay it off right away is the smart thing...financing plans will probably have a much better interest rate and terms than a CC. I think I would go to LilyKat''s alternatives before financing.

 

[Treasure43]

I''m probably in the minority here, but FI paid for my ring on a payment plan. He had the cash but wanted to spread it out over a period of six months. It all worked out beautifully for everyone so I guess it just depends My FI is an accountant and knows what he can and can''t afford so he would''t have done the payment plan if he couldn''t have afforded it.

 

[AustenNut]

I''m with the majority here. Only get what can be paid for in cash, right now. If you can''t afford your dream ring right now then look for estate rings, a different setting, a different stone, a different metal... There are so many beautiful options at various price points, so you are sure to be able to find something you love at a price that you can afford.

 

[jewelz617]

Honestly, and this isn't how I'm saying YOU should proceed...

But when my husband and I were newlyweds he gave me a very, VERY inexpensive ering made of 10k yellow gold and moissanite. We were young and broke with a baby on the way so the engagement ring wasn't top priority but being pregnant, I wanted a ring on my finger

He told me "Pick out your absolute dream engagement ring and we will start a savings for it." So we did, and as of March 17th, 2010 that dream ring will be on my finger! It's just about patience and priorities. I would not recommend putting anything on credit. I will love the fact that my ring isn't being financed. When I pay the designer for it, I own it forever.

 

[Haven]

I agree that you should never finance a luxury purchase. (I''m not convinced you should finance anything, really. DH and I have a mortgage on our home, but we''re paying that off very early.)

 

[princesss]

Cash. I''ve told him I''ll hit him if he even thinks about financing. If you can''t pay cash for a luxury purchase, you can''t afford it.

 

[ChloeTheGreat]

SO and I are paying for it together. All our accounts are joint so there''s not really any way around it! The "chain" store I''ve found the best selection at offers interest-free financing for a year (and we intend to pay it off within this time.) Also, SO is willing to spend more than I can see spending on this kind of purchase. (Makes for fun ring shopping!) I just graduated with a degree in Finance, so I''d like to think I know my way around money.

Thanks for all the opinions/advice!

 

[vc10um]

Date: 12/26/2009 3:40:45 PM
Author: ChloeTheGreat
SO and I are paying for it together. All our accounts are joint so there''s not really any way around it! The ''chain'' store I''ve found the best selection at offers interest-free financing for a year (and we intend to pay it off within this time.) Also, SO is willing to spend more than I can see spending on this kind of purchase. (Makes for fun ring shopping!) I just graduated with a degree in Finance, so I''d like to think I know my way around money.

Thanks for all the opinions/advice!

That is something I can totally agree with. Sometimes it''s just easier to spread out the price, and if you can do it interest free, then by all means take advantage!!! Congrats again!!!

 

[Italiahaircolor]

My DH used a high reward mile credit card when he knew he had the money in the bank...the moment the bill arrived he paid it off meanwhile racking up tons of miles.

 

[Treasure43]

Date: 12/26/2009 5:08:04 PM
Author: vc10um

Date: 12/26/2009 3:40:45 PM
Author: ChloeTheGreat
SO and I are paying for it together. All our accounts are joint so there''s not really any way around it! The ''chain'' store I''ve found the best selection at offers interest-free financing for a year (and we intend to pay it off within this time.) Also, SO is willing to spend more than I can see spending on this kind of purchase. (Makes for fun ring shopping!) I just graduated with a degree in Finance, so I''d like to think I know my way around money.

Thanks for all the opinions/advice!

That is something I can totally agree with. Sometimes it''s just easier to spread out the price, and if you can do it interest free, then by all means take advantage!!! Congrats again!!!

That''s what we did. Intrest free is great! As long as you have the money.

 

[luckynumber]

yep, yet another person who wouldn''t want her FI to put anything on finance. to me, that means he can''t afford it and i don''t want a ring he can''t afford!

i know it''s cheesy, but i would rather take a $100 silver cz ring if that''s all he could afford.

 

[MakingTheGrade]

I didn't really get any say in the ring as my hubby was very traditional (to this day I have no clue what he spend on the ring). But he put the ring on his card, knowing that he could pay it off entirely next month.

I'm sure you guys will make a decision that's right for your situation. You know your finances better than we do after all!

Random thought, but I wonder if people ever get their ering re-possessed if they couldn't make the payments

That would be terrible!

 

[ChloeTheGreat]

Oh my goodness...a repossessed engagement ring?! That would be so sad!

Did you hear the story around Halloween this year about a woman that lost her engagement ring while putting candy in kids'' bags? I would be devastated!

 

[MayFlowers]

I think it''s really a personal decision. Some people do like to take advantage of 0% financing or put it on a credit card to get the reward points. I definitely don''t think the entire ring should be financed. My BF plans on using his tax refund to help pay for the majority of the ring. If he does decide to finance the ring, he will finance no more than $1000 of our $4000 budget. He has told me that it really depends on his financial situation whenever he decides to make the purchase. I definitely don''t want him to have to drain his bank account in order to afford my ring and I really don''t like the idea that he will be paying off my ring either. However, he isn''t keen on the idea of upgrading and wants this to be my only e-ring.

Also, just wanted to add that because of the crazy interest rates, my BF will not finance it unless he can get 0% interest. I know many reward CCs have introductory offers and this may be what he does. But, if he can''t get 0%, then I will probably tell him to wait to buy it. I think it''s ridiculous for him to pay so much extra in interest charges when we could just wait a little longer for him to save up the extra money.

 

[AllieGator]

I agree with many of the other ladies who have said that you should pay what you can pay in cash. An engagement ring is not really a necessity, and although it should be a symbol of your love that you both like, it shouldn''t put you in debt. That''s just me, though. If you find a 0% plan you can take advantage of, that''s another option. Just don''t buy anything that puts a strain on your finances.

 

[sctsbride09]

Pay cash. Im with Haven on not financing anything at all. Unless its a house.

 

[Hudson_Hawk]

Every person and their respective situation is different so I won't judge or make generalizations. Personally, DH and I waited about six months before we had enough to purchase my ring. We try to live our lives credit free or using as little as possible. When I was looking for a ring, we established a budget and stuck with it. We didn't pull the trigger on the ring or stone until we had the $$ in hand. I actually missed out on my dream ring because it was sold while we were waiting. But I found another amazing ring and I was and still am thrilled with it.

We also paid cash for our wedding, hence an almost 2 year engagement!

 

[setell]

Ah I am a bad person to ask how we paid as I am extremely frugal. I will make very calculated purchases so I bought mine with a combo of credit card (I need my points) and bank wire (to get discount). Mind you we had the cash at the bank account so paying with credit card was just to satisfy my urge for collecting points rather than a means of financing. I don''t like financing things unless it''s a hot deal with financing it (again, I pull out my calculator and do a full analysis before purchase is executed). But like the others have said, it''s best to do what is comfortable with you but I am a firm believer of buying what you can afford. Don''t get caught up with all the bling bling you see here as a lot of folks here have done upgrades and saved up for the upgrades! If you want a dose of bling bling go to the SMTR forum and soak it all in!

 

[ChocolateLover]

My BF set the budget for our ring on what he felt was an appropriate amount to spend. Yes, we could afford more - but we both have other priorities higher than rings! We''ll be spending cash, but I know my BF saved for a few months & specifically set this money aside. In all honesty, our budget was 2 grand above what I had in mind, but still significantly less than other people I know. Everybody has different budgets and priorities, but I''m still shocked with any ring expensive enough to be a down payment on a house! That''s just me though, I''ll be nervous enough wearing a few thousand dollars on my hand The ring I chose actually ended up under budget, so I think we''ll dedicate the rest towards wedding bands.

 

[setell]

Date: 12/29/2009 1:12:16 PM
Author: ChocolateLover
My BF set the budget for our ring on what he felt was an appropriate amount to spend. Yes, we could afford more - but we both have other priorities higher than rings! We'll be spending cash, but I know my BF saved for a few months & specifically set this money aside. In all honesty, our budget was 2 grand above what I had in mind, but still significantly less than other people I know. Everybody has different budgets and priorities, but I'm still shocked with any ring expensive enough to be a down payment on a house! That's just me though, I'll be nervous enough wearing a few thousand dollars on my hand The ring I chose actually ended up under budget, so I think we'll dedicate the rest towards wedding bands.

hmm and I thought I was the weird one! hahaha I got a smaller ring as I like money in my bank account more which translate into a bigger and nicer house. Do you ladies consider carrying cost of the e-ring? I made sure mine was under our apartment/house insurance policy's max value of item insured so I didn't have to pay extra yearly fees

Yup, when I said I am anal and pull out my calculator I REALLY do a full analysis of all costs including future costs associated with the ring.

 

[Dreamer_D]

We bought what we could afford at the time, which was a $1500 sapphire ring in wg. And then we bought what I really wanted later when we could afford it by upgrading.

I don''t think you should finance luxury purchases, but the reality is that most couples carry some debt. We do, not a tonne and it is a very very low interest line of credit, but it is there and we make monthly payments. So if we save money to buy the ring, in a way it is money that *could* have been used to pay off debt. I guess I think that if you are carrying any dept load than any luxury purchase is in essence adding to the debt load by taking money away from debt repaymet. Yet most people make such choices in life. Is it so much different to put the ring on a low interest line of credit and pay it off over time?

Of course, the totallty debt free ones may judge this choice, but that is not I.

 

[Bella_mezzo]

My DH did it on his own and paid cash. Since his income was limited at the time, and I didn''t know he was saving, when I found out after he proposed I was really floored. I mean, the guy ate bologna sandwiches and walked to work every day (3+ miles each way!!!!) for three months to save.

In general I don''t believe in financing luxury purchases, but I wouldn''t have had a problem if he''d found really low interest financing or used plastic to bridge a cash flow issue (i.e could have it paid off in 6 months or less).

Jut my two cents, everyone''s situation is different...

 

[Patchee]

I''ll be candid, my E-ring was 12,560.00

to be exact. My husband paid for it in cash. BUT, he has a very well paying job. It is all in the mean of what you can afford without going broke. My DH would not have bought me even a $1,000 ring if he could not pay outright for it.

Some people don''t have those means. If I was in that predictiment I would rather get a low cost right hand ring for the time being and upgrade when cash funds become aviable, but that is just me

 

[princesss]

Date: 12/29/2009 5:57:27 PM
Author: Bella_mezzo
My DH did it on his own and paid cash. Since his income was limited at the time, and I didn''t know he was saving, when I found out after he proposed I was really floored. I mean, the guy ate bologna sandwiches and walked to work every day (3+ miles each way!!!!) for three months to save.

In general I don''t believe in financing luxury purchases, but I wouldn''t have had a problem if he''d found really low interest financing or used plastic to bridge a cash flow issue (i.e could have it paid off in 6 months or less).

Jut my two cents, everyone''s situation is different...

AWWWWWWWWW! I love that.