When it comes to planning for a Radiant cut engagement ring, one of the first decisions you’ll need to make is your budget. And one of the most common questions we hear at KRK Jewels is:
Should I base my engagement ring budget on my gross income or my net income?
The short answer? Base your budget on your net income—the money you actually take home after taxes and deductions. It’s a more realistic reflection of your monthly financial picture and ensures that your purchase doesn’t create unnecessary financial stress during what should be an exciting time.
Let’s break it down.
Understanding Gross vs. Net Income
- Gross Income is your total earnings before taxes, Social Security, health insurance, retirement contributions, and other deductions.
- Net Income (also called take-home pay) is what you actually receive in your bank account—the money available for bills, savings, and discretionary spending.
While gross income might look impressive on paper, it’s your net income that truly reflects what you can afford without sacrificing financial stability.
Why Net Income Is the Better Guide
Using your net income allows you to:
- Set a realistic budget based on actual cash flow.
- Avoid overextending your finances or falling into debt.
- Continue saving for future expenses like a wedding, honeymoon, or home.
For example, if your gross income is $6,000 per month but your net income is $4,200, basing your ring budget on the gross amount could easily lead to overspending.
Should You Follow the “Two or Three Months’ Salary” Rule?
The idea that you should spend two or three months’ salary on a ring is a long-standing marketing myth, not a rule. It originated in the mid-20th century as part of an advertising campaign—not as a financial best practice.
At KRK Jewels, we believe the right budget is the one that fits your lifestyle, values, and long-term goals—not a fixed percentage of your salary. In fact, many modern couples spend between 1% and 5% of their annual income on an engagement ring and often less if they prioritise smart shopping or plan to spend more on other life events.
Budgeting Tips for Smart Ring Shopping
- Use Net Monthly Income as Your Baseline
Start by looking at your monthly take-home pay and evaluate how much you can set aside comfortably without disrupting your bills, savings, or existing commitments. - Determine Your Ideal Timeline
If you’re planning to propose in 6 months, setting aside even $300–$500 a month could add up to a thoughtful, high-quality ring without needing financing. - Explore Flexible Options
KRK Jewels offers a wide selection of rings at various price points, along with flexible financing, layaway plans, and custom design options that work within your budget. - Focus on What Matters Most
Prioritize what matters to you and your partner—whether it’s the carat size, diamond cut, setting style, or overall design. A well-chosen 0.80-carat emerald cut with a hidden halo, for example, may look larger and more elegant than a simple 1.00-carat solitaire.
The Real Value of the Ring
The value of an engagement ring isn’t found in how much you
When it comes to planning for a Radiant cut engagement ring, one of the first decisions you’ll need to make is your budget. And one of the most common questions we hear at KRK Jewels is:
Should I base my engagement ring budget on my gross income or my net income?
The short answer? Base your budget on your net income—the money you actually take home after taxes and deductions. It’s a more realistic reflection of your monthly financial picture and ensures that your purchase doesn’t create unnecessary financial stress during what should be an exciting time.
Let’s break it down.
Understanding Gross vs. Net Income
- Gross Income is your total earnings before taxes, Social Security, health insurance, retirement contributions, and other deductions.
- Net Income (also called take-home pay) is what you actually receive in your bank account—the money available for bills, savings, and discretionary spending.
While gross income might look impressive on paper, it’s your net income that truly reflects what you can afford without sacrificing financial stability.
Why Net Income Is the Better Guide
Using your net income allows you to:
- Set a realistic budget based on actual cash flow.
- Avoid overextending your finances or falling into debt.
- Continue saving for future expenses like a wedding, honeymoon, or home.
For example, if your gross income is $6,000 per month but your net income is $4,200, basing your ring budget on the gross amount could easily lead to overspending.
Should You Follow the “Two or Three Months’ Salary” Rule?
The idea that you should spend two or three months’ salary on a ring is a long-standing marketing myth, not a rule. It originated in the mid-20th century as part of an advertising campaign—not as a financial best practice.
At KRK Jewels, we believe the right budget is the one that fits your lifestyle, values, and long-term goals—not a fixed percentage of your salary. In fact, many modern couples spend between 1% and 5% of their annual income on an engagement ring and often less if they prioritise smart shopping or plan to spend more on other life events.
Budgeting Tips for Smart Ring Shopping
- Use Net Monthly Income as Your Baseline
Start by looking at your monthly take-home pay and evaluate how much you can set aside comfortably without disrupting your bills, savings, or existing commitments. - Determine Your Ideal Timeline
If you’re planning to propose in 6 months, setting aside even $300–$500 a month could add up to a thoughtful, high-quality ring without needing financing. - Explore Flexible Options
KRK Jewels offers a wide selection of rings at various price points, along with flexible financing, layaway plans, and custom design options that work within your budget. - Focus on What Matters Most
Prioritize what matters to you and your partner—whether it’s the carat size, diamond cut, setting style, or overall design. A well-chosen 0.80-carat emerald cut with a hidden halo, for example, may look larger and more elegant than a simple 1.00-carat solitaire.
The Real Value of the Ring
The value of an engagement ring isn’t found in how much you spend—it’s found in the thoughtfulness, symbolism, and intention behind it. Whether your budget is $1,500 or $15,000, your partner will value the love and care that went into choosing it far more than the price tag.
Final Thoughts from KRK Jewels
When setting your engagement ring budget, always start with your net income—the money that represents your real-world financial flexibility. A ring should be a joyful investment in your future together, not a source of pressure.
At KRK Jewels, we’re here to help you make a decision that’s smart, meaningful, and true to your story. Whether you’re dreaming of a custom design or looking for timeless elegance within your budget, we’ll guide you every step of the way.
is $1,500 or $15,000, your partner will value the love and care that went into choosing it far more than the price tag.
