How Much Should You Spend on an Engagement Ring? The Complete Guide

19 November 2024 • 3 min read

Choosing the perfect engagement ring is an exciting, personal decision, but understanding how much to spend can be tricky. With diamond prices ranging widely based on quality and design, having a realistic budget in mind helps balance cost with quality. Let’s explore the key factors to consider when setting your engagement ring budget.

1. Average Cost of an Engagement Ring

In Australia, the average engagement ring cost ranges from $5,000 to $20,000​​. This price range covers a variety of styles, from single diamond solitaires to intricate designs featuring multiple stones. By setting a budget that aligns with your financial comfort zone, you ensure you’ll find the perfect ring without unnecessary financial stress.

2. Rule of Thumb: A Personalised Approach

Traditional advice once suggested spending two to three months’ salary on an engagement ring. However, a more modern rule of thumb is to choose an amount that fits within your broader financial picture, allowing you to enjoy a stunning ring without compromising other priorities like a wedding band or future expenses.

3. Centre Stone: Diamond or Alternative Gemstones?

A centre stone, usually a diamond, is the focal point of most engagement rings. But alternative gemstones, such as sapphires, emeralds, or coloured diamonds, are increasingly popular choices for engagement rings. These alternatives can add uniqueness and often come at a lower price point than larger diamonds​. Popular diamond shapes include round, princess, and emerald cuts, each adding different levels of sparkle. Ernesto Buono Fine Jewellery offers a range of options, from classic diamond rings to colourful gemstone designs​.

4. The 4 Cs: Quality Over Quantity

Understanding the 4 Cs — cut, clarity, colour, and carat — helps you navigate the diamond industry and make informed choices:

• Cut: The cut influences a diamond’s brilliance, with high-quality cuts maximising sparkle. Prioritise cut for a dazzling effect.
• Clarity: Diamonds with minor inclusions, like VS2 or SI1 grades, provide excellent clarity without the higher price tag.
• Colour: Near-colourless diamonds (like G or H grades) offer great value, appearing almost as clear as higher-graded diamonds.
• Carat: Opting for a slightly smaller carat weight, such as 0.9 instead of a full carat, often reduces cost without a noticeable size difference.

By balancing these factors, you can find a diamond engagement ring that maximises quality within your budget​​.

5. Engagement Ring Settings and Design Choices

The setting style plays a huge role in the ring’s appearance and durability. Popular choices include:

• Solitaire: This single diamond setting is timeless and draws all focus to the centre stone.

• Halo: Small diamonds encircle the centre stone, making it appear larger and adding sparkle.

• Three-Stone: Symbolising the past, present, and future, this design offers a larger look with multiple stones.

• Intricate Designs: These may include filigree, pavé settings, or intricate bands, adding personal flair to the ring.

A setting that suits your partner’s taste and lifestyle is key. Ernesto Buono Fine Jewellery’s range includes everything from classic solitaires to intricate, modern designs​​.

6. Alternative Metals and Gemstones

Metals such as white gold, rose gold, and platinum are popular for their durability and style. Alternative metals like titanium offer contemporary style at a lower cost, while coloured stones or alternative gemstones provide a unique touch without the high cost of larger diamonds.

7. Lab-Grown Diamonds: A Budget-Friendly Choice

Lab-grown diamonds have transformed the diamond industry by offering high-quality diamonds at a lower cost. Identical to natural diamonds in appearance and composition, they provide the same sparkle at a fraction of the cost. Ernesto Buono’s lab-grown diamond rings offer a sustainable, affordable choice for those looking for exceptional quality within a realistic budget​.

8. Wedding Bands: Planning for the Full Set

Consider budgeting for a wedding band along with the engagement ring. Many couples choose matching or complementary designs, with diamond-studded or plain metal bands as popular choices. This ensures a cohesive look for both rings, celebrating your commitment with timeless design.

9. Making a Personal Decision

Ultimately, choosing an engagement ring is a personal decision that reflects your partner’s style and your shared values. Balancing your budget with your partner’s tastes and lifestyle will help you select a ring that embodies your love story without overextending your finances.

In the end, the best choice is one that feels right for both your heart and your wallet