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How Much to Spend on an Engagement Ring

How Much to Spend on an Engagement Ring

The marriage proposal is probably the pinnacle of romantic planning. Every detail, from rose petals to candlelight kisses, revolves around that one special ring. Typically, the guys are expected to pick out the perfect ring. That’s a lot of pressure to put on men who, often, are not experts on buying women’s jewelry in the first place.

So what’s a guy to do?

Well, it all depends on if this proposal will be expected or not.

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The Surprise Proposal

This is a tough scenario. If you are completely in the dark about what her tastes and expectations are in a ring, finding the right one can be daunting. How much should you spend? That really depends on your budget and your bride.

According to weddingstats.org, the average cost of an engagement ring for 2013 is just under $5,000.

However, people spend on both sides of the spectrum. It really comes down to what you can afford, and what you feel will fit your lady’s personality and taste.

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The Planned Proposal

While I didn’t know when my man would drop to one knee, I knew it was coming. We had been talking about our future lives together from very early in our dating relationship. We actually went ring shopping in Belfast, Northern Ireland, and enjoyed being pampered by the jewelers with cushy seats and sparkling bubbly while I tried on all types of dazzling gemstones. He observed my choices and learned my taste.

Then, he took this information and found the perfect ring on his own. It made my ring much more special than if I had picked it out. It also added an element of surprise, as I didn’t know when he bought the ring or when he would pop the question.

Here are 3 things to consider when looking at the cost of the ring. (My husband did!)

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1. What price range is affordable?

While the last thing you want to do is go too cheap, you also don’t want to start off your marriage saddled with a huge debt. It’s the man, not the ring, that she is marrying. The guy who stays within a discussed budget will be laying the groundwork to trust him in other important financial matters later in the relationship. I was happy my husband was smart about his purchase and didn’t spend outside of our comfort zone. I have heard that two-month’s salary is a good indicator; but like all societal antidotal ideas, not necessarily worth following.

Before going ring shopping, ask yourself:

  • What is the earning potential of both people in the relationship?
  • Can you pay for the ring upfront from savings or do you have to finance it?
  • If you need to finance, what type of financing is available at what interest rate?
  • How fast can the debt be paid off?
  • What other expenses (wedding, house purchase, honeymoon) will you face going forward, and how will additional debt affect them?
  • How will purchasing an expensive luxury item affect pre-existing financial commitments?

While it’s easy to get caught up in the whirlwind of emotion buying an engagement ring, make sure you put serious thought into these questions and develop an existing price range before you let a smooth salesman turn your head.

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2. What type of ring best represents the woman?

Again, my husband knocked this one out of the park. Not only did he study my jewelry preferences, he went a step further and found a princess-cut setting for a beautiful single diamond. Since the translation of my name means Princess, I found that particularly romantic. He also knew that I wasn’t into flashy jewelry. I liked simple, elegant rings without a lot of extra gems. He found one single, gorgeous stone in a graceful platinum setting. Since I work with my hands a lot, my ring needed to be easy to clean and durable. He accounted for this. His ring choice fit me better than any other ring I ever tried on. Now, after eleven years, it hasn’t needed one repair and looks as new as the day he gave it to me.

Choosing the right ring means fitting it to the woman behind the ring. It means not just knowing her ring size, but knowing her heart. I am a tomboy. Rings equivalent to a mortgage downpayment make me nervous. I’m always afraid I will damage or lose them. I am more comfortable with a more practically-priced offering. Other women love to be frosted with expensive jewelry. The woman’s tastes affect the price.

3. What’s the best way to get the biggest bang for your buck?

My husband drove over two hours from our town to get to a large jewelry supplier. This supplier was able to offer him a ring without the retail markup of regular jewelry stores. Therefore, in cutting out the middle man, my ring was appraised at double the cost he actually spent on it. He stretched his dollar as far as it could go, so when he got on one knee and opened the box (complete with tiny light to make the ring extra sparkly), he knew he was giving me his best representation of his love for me without causing extra debt grief.

Buying the perfect engagement ring can be a difficult decision, but with a bit of planning, it doesn’t have to cause anxiety. Instead, the experience can be enjoyed as the centerpiece of a beautiful memory. I want to stress, a relationship doesn’t rise or fall on the cost of the ring. If it does, it certainly isn’t built on a deep enough foundation to last during the ups and downs of marriage. Whether you spend $1,000 or $10,000, the priceless part of the relationship is the love found as two hearts become one, not in the hardware. The ring is just the symbol—not the sum —of a successful marriage.

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Sarah Hansen

A corporate-sales professional turned entrepreneur

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Last Updated on January 2, 2019

How Personal Finance Software Helps You Get More Out of Your Money

How Personal Finance Software Helps You Get More Out of Your Money

Do you know what mental health experts point to as the biggest cause of stress in the United States today? If you said “money,” then ding, ding, we have a winner!

Three out of four adults today report feeling stressed out about money at least part of the time. People are either worried about not having enough money or whether they’re putting the money they do have to use in the best possible way.

Your money is either in charge of you or you’re in charge of it, there’s no middle ground. Using some type of personal finance software can help alleviate some of that money stress and better allow you to manage your money effectively. Without it, you may just be setting yourself up for constant financial worry. Life is already tough enough and there’s no need to make it more difficult by simply hoping your money issues will all work out in your favor. Hint: they won’t.

This guide will help you to understand how personal finance software can better assist with both accomplishing long term financial goals and managing day-to-day aspects of life.

Whether it’s tracking the savings plan for your child’s college fund or making sure you won’t be in the red with the month’s grocery budget, personal finance software keeps all this information in one convenient place.

What Exactly is Personal Finance Software?

Think of it like the dashboard in your car. You have a speedometer to tell you how fast you’re going, an odometer to tell you how far you’ve traveled, and then other gauges to tell you things like how much gas is in the tank and your engine temperature. Personal finance software is essentially the same thing for your money.

When you install this software on your computer, tablet, or smartphone, it helps to track your money — how much is going in, how much is going out, and its growth. Most personal finance software programs will display your budget, spending, investments, bills, savings accounts, and even retirement plans, levels of debt, and credit score.

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How It Leads to Financial Improvement

It shouldn’t come as a surprise, but people who regularly monitor their finances end up wealthier than those who don’t. When you were a kid, keeping track of all of your money in a porcelain piggy bank was pretty easy. As we get older, though, our money becomes spread out across things like car payments, mortgages, retirement funds, taxes, and other investments and debts. All of these things make keeping track of our money a lot more complicated.

Some types of personal finance software can help make things a little less complicated, setting you up to meet financial goals and taking away some of the stress associated with money.

Even if you already have a Certified Financial Planner (CFP) some type of personal finance software can be of great benefit. Whereas CFPs focus on the big picture of your money, they don’t handle the day-to-day aspects that determine your overall financial health.

It’s also not nearly as complicated as you might think and can take out a lot of the tedium that comes with doing everything on an Excel spreadsheet or with a pad and pencil.

Types of Personal Finance Software

When it comes to personal finance software, it generally fits into two categories: tax preparation and money management.

Tax preparation software such as Turbo Tax and H&R Block’s software can help with everything from filing income taxes to IRS rules and regulations and even estate plans. Plus, there’s the benefit of filing online and getting your refund check a lot faster than if you were to mail off your forms after waiting in line at the post office.

For the purpose of this article, however, will be focusing more on the personal finance software that aids with money management.

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Money management personal finance software will help you to see the health of your cash flow, pay down debt, forecast for expenses and savings, track investments, pay bills, and do a host of other things that 30 years ago would have practically required a team of accountants.

When to Use Personal Finance Software

So far we’ve gone over what exactly personal finance software is and how it can be a benefit to your money. The next logical step in this whole equation is determining when it should be used and how is the best way to go about getting started using it.

Below are four of the most common and practical ways to use personal finance software. If all or any of these apply to you and your money, then downloading some type of personal finance software is going to be a smart move.

1. You Have Multiple Accounts

There’s a good chance that when it comes to your money, it’s in more than one place. Sure, you probably have a checking account, but you may also have a savings account, money market account, and retirement accounts such as an IRA or 401k.

If you’re like the average American, you probably have two to three credit cards as well. Fifty percent of Americans also don’t have loyalty to just one bank and spread their money across multiple banks.

Rather than spending hours typing in every detail of every account you have into a spreadsheet, many programs allow you to easily import your account information. This will help to eliminate any mistakes and give you a bird’s eye view of everything at once.

2. You Want to Automate Some or All of Your Payments

Please don’t say that you’re still writing out paper checks and dropping each bill in the mailbox. While it’s noble that you’re doing your part to keep postal workers employed, we’re 18 years into the 21st century and you can literally pay every bill online now.

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There’s no need to log into every account you have and type in your routing number either.

With personal finance software you can schedule automatic payments and transfers between all of your imported accounts. Automatic transfers will help to make sure you have the necessary funds in the right account to ensure all bills are paid on the appropriate date. Late fees are annoying and do nothing but cost you money. It’s time that you said goodbye to them once and for all.

3. You Need to Streamline Your Budget

Perhaps the best feature of personal finance software is that it allows you track everything going in and out of your virtual wallet.

Nearly every brand of personal finance software out there has easy-to-read graphs and charts that allow you track every cent you spend or earn, should you choose. You might be pretty amazed when you see just how much you spent on eating out last month or if you splurged a little more than you should have on Christmas gifts last year.

Every successful business on the planet has a budget and using personal finance software can help you trim the fat on your spending in ways that affect your everyday life.

4. You Have Specific Goals to Meet

Maybe it’s paying off debt or saving for up something like a European vacation. Whatever your financial goal is, whether it’s long-term or short-term, personal finance software programs are one of the savviest ways to go about reaching those goals.

You can do everything from set spending alerts to notify you when you’re over budget to automating what percentage of your paycheck goes to things like retirement investments. The personal finance software that you choose should show you exactly how close you are to hitting those goals at any given time.

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How to Get Started

From AceMoney to Mint and Quicken, there ’s no shortage of personal finance software apps out there. Many of these programs are free to download and will allow you to pay bills, invest, monitor your net worth and credit profile, and even get a loan with the swipe of a finger.

Other programs may only offer you limited services and will require a one-time fee or subscription to unlock all that they offer. These fees can often vary from as little as two dollars to 50 bucks a month.

It’s best to start off with the free version and then gauge whether you’re able to accomplish everything you’d like or if it’s worth exploring one of the paid options. Often times the subscription programs come with assistance from financial planning and investment experts — so that can be a real benefit.

When deciding which personal finance software program to use, it’s also important to look at how many accounts you wish to monitor. Certain programs limit the number of accounts you can add. Be sure that if you have checking, credit card, and investment accounts to monitor, that you choose a service that can monitor them all.

Finally, when looking around for the right personal finance software that meets your needs, make sure that you’re comfortable with the program’s interface. It shouldn’t be expected that you recognize every single feature instantly, but if the features don’t seem readable and manageable to you, then you’re not as likely to use it and get the full benefits.

Final Thoughts

Personal finance software can go a long way in helping you to take control of your money and meeting your financial goals. It’s important to note, however, that some focus more on budgeting and expense tracking while others prioritize investing portfolios and income taxes. Explore several different programs and read reviews to find the one that’s right for you.

In this day and age, managing one’s personal finances in a secure manner that allows the user to have a real-time visual representation of their money is easier than ever before. With the numerous applications that are out there — both free and subscription-based — there’s no reason that every person can’t take control of their money and ensure they’re making smart money moves.

Featured photo credit: rawpixel via unsplash.com

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