When it comes to purchasing an engagement ring, most people have heard of the “three months’ salary” rule. It’s a standard that suggests you should spend three months’ worth of your salary — say, $25,000 if you earn $100,000 annually — on a symbol of your love and commitment. But in today’s economic climate, that rule just doesn’t make sense. After all, spending that much on a ring can quickly derail your financial plans, especially when housing costs are soaring, student debt is rising, and inflation is outpacing wages. So, what’s a couple to do?
The “three months’ salary” guideline was initially popularized by jewelers as a marketing strategy, but with the rise of more affordable alternatives, it’s time to rethink the way we approach engagement rings.
Ankur Daga, CEO and co-founder of Angara, a leading online fine jewelry brand, explains that the “three months’ salary” rule no longer applies in today’s market. “In today’s context, it doesn’t make much sense,” Daga says, pointing out that consumers are now more conscious of their spending due to inflation and rising living costs.
The average price of an engagement ring in the U.S. has been steadily decreasing for the past decade. According to Daga, “The average spend was around $6,000, and it’s come down to $5,500 last year. We expect it to drop to $5,000 this year.” As more couples move away from outdated standards, they’re finding that an engagement ring doesn’t need to come with a hefty price tag to be meaningful.
For many couples, “affordability” is now the top priority when shopping for an engagement ring. In fact, a recent study by Angara found that most women are now focused on finding a ring that suits their personal style, rather than chasing the idea of perfection. With a greater range of options available, couples can now select or even create a piece that fits their personality, without breaking the bank.
The trend is also shifting toward more personal and meaningful choices. Daga explains, “It’s not about spending more; it’s about what appeals to you as an individual.”
The growing popularity of lab-grown diamonds is another factor making the “three months’ salary” rule obsolete. In fact, 2024 saw a milestone: for the first time, more lab-grown diamond engagement rings were sold in the U.S. than natural diamonds. According to Angara’s survey, 52% of Gen Z shoppers would prefer a larger, lab-created diamond over a smaller natural one.
Lab-created diamonds are virtually identical to their natural counterparts in terms of physical, visual, and chemical properties. The only difference is that they’re created in a laboratory environment rather than deep within the Earth’s crust. Daga notes, however, that lab-grown diamonds are not considered investment pieces, as they may not hold their value as well as natural stones. But they are priced at roughly 10 times less than natural diamonds, which means a couple can afford a larger stone while staying within budget.
While diamonds have long been the go-to choice for engagement rings, more couples are turning to colorful gemstones as alternatives. Angara’s survey found that 25% of shoppers would prefer a colored gemstone, such as a sapphire or emerald, as the centerstone of their engagement ring.
“We’re excited that people are expressing themselves and buying what they want, not just what they’ve been told they should buy,” says Daga. This shift toward gemstones reflects a broader trend of individuality and personal expression in jewelry choices.
As engagement ring prices for stones continue to drop, buyers are turning their attention to the settings. More customers are opting for premium settings, such as platinum, although white gold remains the most popular choice. The rise of custom designs is also democratizing the jewelry industry, making it possible for more people to create unique, personalized pieces at affordable prices.
In the past, custom-designed jewelry was the domain of the wealthy elite, with artisans crafting each piece by hand over the course of months. Today, technology has made it easier to create custom designs at scale, and the internet allows customers to work with jewelers from the comfort of their own homes.
“Jewelry should be a reflection of who you are and what you care about,” Daga says. “Now, thanks to advances in technology, we’re able to provide custom experiences at scale, making personalized engagement rings more accessible than ever before.”
The traditional “three months’ salary” rule is outdated, and today’s couples have more options than ever before when it comes to choosing an engagement ring. Whether it’s opting for a lab-grown diamond, choosing a colorful gemstone, or creating a custom design, the focus is shifting from a set price to one’s personal style and budget. As jewelry continues to evolve, so too does the meaning behind the pieces we choose to symbolize our love and commitment.
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