Saving for something cardinal like an engagement ring takes a bit of heady planning, prehensile prep work, and some frugality. The hassles associated with the ‘how to’ of savings can easily be overcome if you’re penny-wise and thrifty. Add to that the tips below and you’ve got yourself a dazzling engagement ring that is trendy within a stringent budget, courtesy money-saving. Take a look:
Planning is Key
Any project’s success depends on a well-thought-out plan that provides a lucid roadmap to follow. It makes the overall vision clear and the entire task easier. Consider savings as a project that will require prudent and witty groundwork. Research well on the subject! This essentially means you should search for the basic 4C’s of an engagement ring precisely; color, carat, clarity, and cut. Execute a comprehensive market-analysis to finalize the type you want. Remember you have to compromise on the 4Cs depending on your budget and savings duration. Buying a .85 or .95 carat diamond instead of a one-carat weight will make the diligence worthwhile.
Define A Budget
It’s essential to have a defined budget, so you are clear on how much you need to stash away for the purchase. For example, if you decide on a 0.85 rose-cut diamond with S12 clarity and $5,000 price tag, then you know what your target is. Once you’ve set the budget along with the plan, proceed to savings and ‘how to’.
Calculate Savings And Plan The ‘How To‘
Without proper planning, it can be hard to calculate how much to spend on an engagement ring. Once you have the budget defined, use a calculator to work out how much you can put away every month keeping in mind the duration of the savings that is usually the time till the purchase date. So, if you have a budget of $5,000 and are planning on buying the ring a year from now, you will have to save approximately $420 every month. With the monthly savings defined, plan the ‘how to’ by reworking your spending and monthly income to ensure you can save the required ballpark hassle-free. Remember, frugality and penny-pinching are the keys.
Set Up Automatic Transfer And Savings Account
Set up a separate savings account and online banking functionality, so you can transfer the savings every month to your account. If you could chip in large amounts, in the beginning, it’d be great, as this will allow you the flexibility to manage your savings better. Combine this with a financial product like a loan to step up the savings and ease troubles.
Avoid Impulse Spending And Big Purchases
The essence of saving is thriftiness and this means avoiding impulse buying, large purchases and opting for affordable corporate catering options. You know you need to buy an engagement ring, have worked out the monthly cash flows and the how-to, so stick to the plan. Ditch the costly high-tech stereo system, Xbox, and the Ralph Lauren suit because you can always purchase these accessories later. There’s always a choice of opting for less expensive items or products on sale. It will take a bit of effort in having to let go of expensive things and cool stuff you pine for but all that will vanish when you hold that diamond ring in your hand.