I can’t think of a more dynamic time in one’s life than where Millennials find themselves right now. Our twenties and thirties are loaded with critical decisions at almost every turn. From launching careers and finding purpose in life, to buying homes and starting families, there’s no other time quite like it. I’d argue it’s the most challenging financial time as well. After all, many are faced with piles of student loan debt, low wage growth and expensive living costs, making navigating young adult lives even more difficult.
For most Millennials, the pathway forward in life still involves settling down with the one you love. While we may have redefined what marriage means to us, we haven’t dismissed the traditional approach to letting our significant other know we’d like to be with them forever. That means getting down on one knee, opening a ring box and asking them for their hand in marriage. But before any of that can happen, the symbol of the union — the ring itself — needs to be purchased. And what do you know about engagement rings other than they can be very expensive?
At this point in my career, I’ve lost track of how many times my clients have asked questions around the purchase of an engagement ring. In many instances, buying a ring has found its way into client’s financial plans because people want to know not only what it takes to purchase the ring, but also how it affects other financial goals like building up a savings or achieving financial independence. I’ve seen firsthand how financial planning empowers people to be comfortable with taking the next steps in their adult lives, which is why I’ve partnered with Blue Nile, the largest online retailer of certified diamonds, engagement rings and fine jewelry, to help further educate individuals regarding this major purchase.
Shopping for an engagement ring is an emotionally driven process, steered by financial pressures and obligations to impress and find the ring of your partner’s dreams. And unfortunately, making emotionally charged financial decisions typically doesn’t end well for the decision maker. In a recent survey conducted by the retailer, nearly three-quarters (72%) of engagement ring shoppers expressed they feel obligated to spend a certain about of money on an engagement ring, and more than two-thirds (69%) of respondents said that figuring out how to save for or finance an engagement ring is just as if not more stressful than actually proposing!
Making the purchase decision even more difficult is that there is no “set plan” when it comes to proposing. Almost half (42%) of the survey respondents admitted to not having a well-defined plan, or any plan at all, for how to save for or finance an engagement ring. While every path to buying an engagement ring is unique to an individual’s finances, saving habits and available resources for advice, it’s not good if you can’t even plan to afford the purchase of an engagement ring – how are you going to manage a financially sound life for two? There are only bigger and more significant purchases ahead, so getting this one right can set the tone for financial decisions in the future.
What makes a purchase go smoothly is when it’s an informed one. In a previous post, “Three Criteria,” I provided a simple system for helping anyone determine whether a particular financial decision is a good one. However, the system assumes you already know enough about the thing you want to buy. So, when it comes to diamonds, Blue Nile can help you with that. Understanding the anatomy of a diamond (aka the Four C’s) and features of the ring is crucial to getting the best value and sparkle. The good news, you can find unbiased diamond and jewelry education guides and a handy cheat-sheet online, and their diamond and jewelry experts work directly with customers 24/7, every step of the way towards discovering and even designing the perfect handcrafted ring.
Millennials already have enough financial challenges to overcome and the process of buying a ring doesn’t have to be one of them. Buying the perfect ring means striking a balance between what’s in your heart and what you can afford to do, and the resources presented here are just some of the tools available to objectively help you make a decision that both recognizes your current financial situation and your long-term goals.
This post is considered sponsored content. Bone Fide Wealth, LLC was provided consideration and/or compensation for it’s creation as well as the promotion of Blue Nile.
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The hardest part of personal finance isn’t a calculation, concept or theory. It’s knowing what you want for yourself and caring enough to go after it.
— Douglas A. Boneparth (@dougboneparth) October 10, 2019