Few purchases feel as meaningful as an engagement ring. This single piece of jewelry marks the start of a lifelong commitment and carries more emotional weight than almost anything else you will buy. But with all that importance comes one big question: how much should you spend?
For decades, people were told to follow the “three months’ salary” rule. If you earned $5,000 a month, you were expected to spend $15,000 on a ring. That idea stuck for generations, but in today’s world, it feels outdated. With shifting priorities, rising costs of living, and endless new options, couples in 2025 are rethinking what their budget should look like.
This blog explores where the old rules came from, why they no longer fit modern life, what couples are actually spending today, and how to create a budget that reflects both your financial comfort and your love story.
The Origin of the “Three Months’ Salary” Rule
The three-month guideline was never a cultural tradition. It was created by marketing campaigns in the mid-20th century. Jewelers promoted the idea that true love had a price tag, and investing heavily in a diamond was the ultimate symbol of devotion.
At the time, the message worked. For many couples, a large diamond in a classic solitaire setting was the standard. But today, with different lifestyles and a wide variety of ring choices, that rule feels less relevant than ever.
Why the Rule Does Not Work in 2025
Many people still hear about the three-month rule when they start shopping for rings. While it once shaped expectations, it no longer makes sense for modern couples. Let’s look at why it falls short in today’s world.
Financial Realities Have Changed
Couples today are managing more financial responsibilities than ever—student loans, rising property prices, travel goals, or even early family planning. For some, spending months of income on a ring would mean sacrificing other important milestones.
More Ring Options Are Available
In the past, diamonds were the default choice. Now, couples have far more freedom. Alternatives such as moissanite engagement rings, sapphire engagement rings, and emerald engagement rings offer beauty and durability at different price points. A bride who once might only have seen a solitaire diamond ring can now explore styles like the oval engagement ring, princess cut diamond ring, or even a striking marquise engagement ring.
Customization Changes the Conversation
The growth of custom engagement rings has shifted how couples think about cost. Instead of buying from a showcase, they can decide where to focus their investment. Some prefer a larger stone, while others prioritize a meaningful setting or intricate custom engagement bands.
What Couples Are Spending in 2025
So how much are people actually paying for engagement rings in 2025? The numbers vary widely, and averages often don’t capture the full story. While industry reports in Australia suggest that many couples spend between $5,000 and $10,000, the reality is much more flexible.
Here’s a closer look at the different spending patterns:
Under $3,000
Many couples in this bracket choose minimalist designs, lab-grown diamonds, or alternatives like moissanite engagement rings. For those who prefer subtle elegance, a solitaire ring with diamonds on the band or a smaller center stone in white gold engagement rings delivers beauty without overwhelming the budget.
$5,000 to $10,000 (the most common range)
This range is where most couples land. It allows for a well-cut 1 carat diamond ring, often in classic designs such as an oval engagement ring or princess cut diamond ring. Couples here typically balance quality with cost, focusing on cut and setting rather than sheer size.
$10,000 to $20,000
This range opens the door to larger stones, rarer cuts, or colored gemstones such as sapphire engagement rings and emerald engagement rings. Couples who choose this tier often see the ring as a long-term investment piece that will remain a centerpiece of their collection.
$20,000 and above
At the top end, couples invest in rare diamonds, elaborate custom engagement rings, or even complete sets that include mens wedding rings and wedding rings for women. These rings may feature unique stones such as marquise diamond rings or elaborate designs that showcase craftsmanship as much as carat size.
The important takeaway is clear: there is no single “right” amount to spend. Some couples prioritize saving for a home or travel and prefer to keep their ring budget modest. Others place the ring at the center of their engagement story and choose to invest heavily.
Ultimately, the best budget is the one that feels sustainable, comfortable, and meaningful for your relationship.
Factors That Should Shape Your Budget
When planning your budget, it helps to look beyond the numbers. A thoughtful approach considers your financial comfort, your partner’s style, and the long-term significance of the ring. Here are the main factors to keep in mind.
Your Finances
The ring should be a joyful purchase, not a source of stress. Consider your current savings, ongoing expenses, and goals for the future. If an expensive ring would hold you back from buying a home or saving for travel, it might not be the right decision.
Your Partner’s Style
Your partner will wear this ring every day. Paying attention to their taste is just as important as deciding how much to spend. For some, a 1 carat diamond ring in a white gold engagement ring with diamond setting feels timeless. For others, a princess cut diamond ring or a colorful sapphire engagement ring feels more authentic.
Longevity and Meaning
Trends change, but a well-chosen design will feel right for decades. A solitaire diamond wedding ring remains a favorite because it is simple, elegant, and never loses its appeal. Thinking about longevity helps you spend wisely.
The Power of Custom
Working with a jeweller to create a custom engagement ring allows you to direct your budget where it matters most. Maybe you want a larger centerpiece stone. Maybe you prefer intricate craftsmanship in the band. Custom means tailoring the design to your priorities.
Smart Ways to Get Value From Your Budget
Spending wisely does not mean cutting corners. It means knowing where to focus so you get the most from your investment.
- Explore Alternatives: Stones such as moissanite deliver brilliance at a lower price.
- Prioritize Cut Quality: A well-cut oval engagement ring or emerald cut diamond ring often looks brighter than a larger but poorly cut stone.
- Choose Metals Thoughtfully: White gold engagement rings give a luxe look at a lower cost than platinum.
- Plan Matching Sets: Coordinating wedding rings for women with mens wedding rings can be cost-effective and ensures a seamless look.
Spend With Intention
So how much should you really spend on an engagement ring in 2025? The answer is not tied to an outdated formula. It comes down to what feels right for you as a couple.
Forget rigid rules. Instead, focus on creating a ring that reflects your story—whether that means a solitaire diamond ring, a sapphire engagement ring, or a custom engagement band designed around your love.
If you are already thinking about your own ring and what to invest, DDS Diamond Design Studios is here to help. From engagement rings Adelaide to clients across Australia, we guide you through every step, ensuring your ring is as meaningful as it is beautiful.
Ready to create the ring that matches your love and your life? DDS Diamond Design Studios will help you design it with care.
