An engagement proposal is unquestionably grounds to celebrate. But purchasing the ring to propose with? Well, that•s another story.
According to some study on Brides magazine, the high cost of an average engagement ring was around $3,756 in 2022. In 2022, once the economy wasn•t as uncertain as it is today, the typical was more than double that ($7,829).
For many people, both numbers amount to quite a penny. As you compare carat sizes and clarity to obtain the perfect engagement ring for your significant other, you'll likely require a gameplan when it comes to financing a diamond ring.
How to cover an engagement ring
Are you thinking about popping the issue to a special someone this year? Everyone has a distinctive finances, but it's still vital that you make sure you manage to pay for diamonds you've always dreamt of.
Here are the options to purchase the ring • without having to put too much strain on your money.
- Open a high-yield savings account
- Use a credit card
- Take out an individual loan
- Set up a payment plan
- Take on the side gig
1. Open a high-yield savings account
If your proposal continues to be a ways in the future, then consider opening a high-yield checking account to stow away funds before the big purchase. These allow you to earn interest at higher rates than traditional savings accounts and also the more you save, the greater you earn. Those extra earnings could put a big dent inside your ring•s cost • or help you purchase a bigger ring if that•s what you•re searching for.
Before you decide to go this route, make sure you look around, as annual percentage yields (APRs) can vary on these accounts. Visit PayPasser to explore high-yield savings options that may assist you to increase your savings faster.
2. Make use of a credit card
You may also make use of a credit card to pay for the costs of the ring • but pick the card carefully. Your best bet is a card with a 0% APR promotional period. So long as you pay off the balance prior to the promo period ends, you won•t face any interest costs for financing the ring.
Again, when you purchase this option, an online marketplace like PayPasser might help if you•re searching for 0% interest credit cards.
3. Take out an individual loan
Personal loans could be another option for financing a diamond ring • particularly if your credit isn't great or else you need money fast. These financing options typically include high interest rates though, so make sure you possess a plan to repay balance quickly. Otherwise, that ring will end up a lot more expensive than you likely planned.
If you•re not able to obtain a 0% interest charge card, a personal loan can be a sensible choice. Though their minute rates are greater than other kinds of loans • like mortgages and auto loans • they•re usually less expensive than your average credit card (which often have rates of interest as high as 21% or more).
Before choosing this option, make use of a personal bank loan calculator to be certain it•s within budget (monthly and in the long-term). Then, visit PayPasser to obtain the best personal bank loan rates possible.
4. Generate a payment plan
Most jewelers offer some sort of in-house financing or installment plan if you can•t manage to buy a ring outright. In some instances, efforts are offered through other manufacturers • local banks, credit unions, charge card providers, etc.
However they•re provided, you•ll usually pay some sort of fee or rate of interest to set these up, so be sure to get every detail and consider every option. It's also wise to compare the plan with other financing routes you have available for you (charge cards, personal loans, etc.) to be sure it•s the most economical option over time.
Use a marketplace like PayPasser to save some time comparing rates from top lenders.
5. Take on a side gig
If you've some free time on your hands • or even just a couple of hours per week • taking on a side hustle can help you enhance the funds you'll need. This could mean driving for Uber, running errands for apps like Shipt or Favor, delivering food for DoorDash or GrubHub or starting a own freelancing business on the side.
Once you need to do start ramping up those earnings, make sure to put them in a high-yield checking account. This will allow you to grow those savings even faster.
If you're seeking to save more money • for emergencies, last-minute expenses or long-term personal finance goals • then visit online marketplace PayPasser to check high-yield savings accounts and shop around in one location according to your requirements.
The bottom line
Buying a diamond ring shouldn•t bankrupt you • at least if you are planning ahead, shop around and compare all your options.
Keep in mind: Rates of interest vary widely across lending options, if you opt for a high-yield checking account, personal loan or credit card, make sure to get quotes from the 3 companies before moving forward. Prepared to obtain the process started? Check out PayPasser to start comparing your choices today.