Diamonds and Dollars

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Quote

“How to find a good spouse? -the best single way is to deserve a good spouse.” - Charlie Munger

Fitting quote, RIP to a legend 🙏 

Diamonds and Dollars

Whoop whoop, your boy finally got engaged! Spoiler alert…she has been my proof reader for almost every one of these emails.

Being engaged has been exciting, but one thing I didn’t see coming was the amount of questions on the process of buying a ring.

So I figured I would do a post covering:

• How much you should spend

• Tips on saving for a ring

• How much I spent

The verbiage of this email might only be for those looking for a wedding ring, but the concepts can be applied to any major purchase that involves a spouse.

As many of you likely know, the proposal is only the beginning.

Let’s get into it 🤝 

How much should you spend:

This is a double edged sword. You want something nice enough that she is satisfied, but not something that will cause you to go into debt or significantly stress your finances.

The “wedding industry” typically says 2-3 months of your gross pay. To be honest, I don’t like this.

Your budget should be based on how much you feel comfortable spending. There are so many different ring variations nowadays. You can likely find something that will make both of you happy, and not break the bank.

The advice that served me best:

While I kept the purchase a secret, having subtle conversations here and there allowed me to get a good idea of what she wanted before hand and start feeling out costs. Highly recommended as it also reduces the stress of trying to pick a ring completely on your own (us guys have famously bad taste).

How to save:

Now you know what she wants, time to start stacking those dollar bills.

We all know that your money has a huge long term growth potential, especially when you are young. Keeping that in mind, it’s important to keep yourself in check and make sure you don’t significantly throw off your investing plan.

For example, spending 4 months salary on a ring that causes you to go into credit card debt and make payments for two years is a no-no. And don’t forget, you will also have to get insurance on that beast of a diamond as well.

My recommendation is to try to come up with an amount that you can pay in cash. Once you get an idea, setup a plan to start saving. Break it down into monthly or even weekly savings goals if needed.

Also, for the single studs out there, don’t think you have to be dating to start this saving process. If your goal is to get married in the future don’t be afraid to start setting a little extra money aside now. Just like any other big life purchases, you want to plan ahead.

How much I spent:

Through setting a expectation from both sides, I was able to get a good idea of what my fiancé wanted and start saving early. Those details also allowed me to go to a jeweler and find a rock that I knew she would love and that wouldn’t put me into a cold sweat at night.

All in, I spent a little less than one month’s gross salary. This was a number I was comfortable with thanks to the planning and savings tips above. Did it still hurt a little bit, yes, but even with buying a ring this year I have been able to maintain my monthly investments and max out the good ole Roth IRA.

PS….

If there is another quick tip it would be to go look at diamonds in person. Online is great, but personally I found it really helpful to discuss the different cuts, clarities, colors, and sizes with a jeweler. You can see if the diamonds that are “perfect” and cost another 4k look any different…hint hint unless you stare under a microscope for 5 minutes you’ll never tell the difference (call me stingy, but I looked).

Conclusion

The process of buying an engagement ring is not talked about much, yet is one of the biggest purchases young men will make.

Everyone’s situation will be different, because personal finance is…personal, but hopefully the tips from my experience above will help you in your search.

Now that I’m done planning a proposal and moving (story for another post), I’ll be trying to get back to sending these emails weekly.

See you in the next one, I hope she says yes 💍 ~ Cade

Cade's Finds

Behaviors That Influence Our Money Habits - The legend Morgan Housel did a great podcast with Scott Galloway breaking down how to make better money decisions and how money influences our happiness.

How Safe Is An 8% Withdrawal Rate? - Data driven post breaking down just how risky it is to assume an 8% withdrawal rate. Sorry Dave Ramsey fans, this one might need some rethinking.

Tell Better Stories - Awesome four minute video of Kurt Vonnegut explaining how to tell stories. You need this before you give your one year recap at Christmas this year.

Best Memes

Man would have been unstoppable.

Who needs a tip after whipping up thanksgiving dinner?

Nothing in this email is intended to serve as financial advice. Do your own research. Thanks for reading, if you have any questions, comments, suggestions, etc. about the email don’t hesitate to send me a reply.