The Engagement Ring Salary Rule

According to GroomGroove.com, the DeBeers company invented the "two months' salary guideline" in the late 1940s. The diamond merchant did so to encourage diamond sales when the United States was in a depression. In turn, the company reduced its diamond prices to fall within the rule's parameters.

Function

The purpose of the salary rule is to give grooms-to-be an idea of the appropriate amount of money to spend on an engagement ring.

Gross

The rule refers to gross monthly salary, rather than net salary. If a man grosses $4,000 per month, he's expected to pay $8,000 for the ring, not $5,600 (his net take-home pay for two months after deducting 30 percent for taxes).

Size

GroomGrove.com estimates that a ring that adequately represents the four Cs of diamonds (color, cut, clarity and carat), costs a minimum of $2,500 in 2009.

Financing

If you earn a modest living, you can make payments on an engagement ring, rather than buying it outright.

Considerations

An engagement ring doesn't have to have a diamond. If your bride-to-be would prefer her birthstone, or another favored gem, you may be able to buy her a ring with a larger stone than a diamond.

Investment

The salary rule reinforces that an engagement ring is both an emotional and financial investment. The jewelry is a piece of property that should be insured, and the emotional attachment makes it a worthy of becoming a family heirloom.