Marriage proposals: Planning and budgeting your engagement

What could be more romantic than a marriage proposal? The mere mention conjures up images of roses, champagne, a beautiful diamond engagement ring and the unforgettable look in her eyes when you ask her to marry you. But there's also a very practical side to marriage proposals that deserves some serious thought.  How much money should you spend?

The first thing you need to do is come up with a plan for your marriage proposal. It's important to propose in a way that she'll appreciate and remember for the rest of her life. This requires that you understand what kind of marriage proposal will please her most and—just as important—what will not please her!

Think what kind of marriage proposal would please her most:

• Traditional marriage proposal ideas

• Private and intimate marriage proposal ideas

• Impressive marriage proposal ideas

• Romantic marriage proposal ideas

A simple marriage proposal can be just as romantic as an extravagant one – so consider how much you want to spend on the proposal, but more importantly think about what she truly wants.  Your marriage proposal can be simple or elaborate, fun or serious, close to home or halfway across the world. The only requirement is that it must reflect her personality and what you believe she would want. Need more help figuring out what kind of proposal will please her?

The best advice is to get off on the right foot by planning a proposal and selecting a ring in a way that fits with your financial situation. As much as you might like to sweep her off her feet with a trip to Hawaii and the biggest diamond in the store, don't be tempted to incur heavy debts that will come back to haunt you. Just as important—if you're the frugal type, try to let yourself go a little. You don't want to disappoint her on this special occasion.

How do you determine how much to spend on her ring?

A diamond is a symbol of enduring love and commitment, and an engagement ring is a once-in-lifetime gift. So there's obviously a lot of emotion tied up in this purchase. But emotion aside, when buying diamonds, you don't want to overextend yourself. Finding the right balance is the key.

The selection of a beautiful diamond is almost limitless today, and there's an option for virtually every budget. Remember, it's not the size or cost of the diamond but the love it represents that's important. We have tips on finding the right ring .

So what is the right amount to spend? If you're buying a diamond engagement ring, the commonly accepted guideline for your purchase is the equivalent of two months' salary. Of course, your individual circumstances will determine if you should spend more or less than this.

Paying for your diamond.

If you haven't saved enough money to pay for her ring, you have two options. The first is a credit card, but keep in mind that you'll have to pay interest, and this will increase your total expenditure.

A better option is one that's offered by most jewelers, especially chain jewelers: the layaway plan. Typically, you would put down a 20 percent deposit, then pay the balance in three installments over three months. The best part of a layaway plan is that it's interest-free.

Looking ahead: Who pays for the wedding?

Traditionally, it's the bride's parents who pay for the wedding. Today, however, it's not unusual for the groom's family to help with the costs. And with many couples marrying later, it's also common for the bride and groom themselves to pay for some or all of the expenses. In fact, statistics show that 40 percent of today's couples foot the bill for their wedding celebrations.

You'll want to come up with a budget you're both comfortable with before making any wedding plans. And you'll want to agree on your priorities before you move forward. The important thing is to avoid beginning your marriage with a disagreement or, worse yet, with outstanding debt.

The perfect marriage proposal is one that takes into account what she wants, and what you can realistically afford. Keep costs in mind – but focus on romance.  

What you need to know to find the perfect ring .

Marriage proposal do's and don'ts.