Never go into debt for an engagement ring. It doesn't make sense. The average cost of a diamond engagement ring is $3,500 to $4,000. Jewelers recommend that you spend two months salary, but this is an arbitrary amount pushed by the world's largest diamond producer. Do you suppose they have your best interests at heart? Not!

It's difficult to be practical when deciding how much money to spend on a diamond engagement ring because what it symbolizes is priceless. You and your intended have probably been conditioned to believe that the size and quality of the diamond (the bigger the better mentality) reflects the depth of your love and commitment.

Is a Diamond a Good Investment?

If you think a diamond engagement ring is a good investment, you're a victim of another very effective marketing ploy used by many jewelers to try to make you feel better about spending more than you can afford. The diamond you buy may or may not increase in value, depending on its quality, but investments should not be made in anything as emotionally charged as a diamond engagement ring.

How would you feel about selling the ring if you needed the cash for a new car or to pay off debt? Not very good. So keep your investments separate from the tradition and symbolism of a diamond engagement ring.

How Much Should I Spend on a Diamond Engagement Ring?

Prepare yourself to face sales pressure by deciding on your budget for an engagement ring before you start looking, based on your personal financial situation. Don't be influenced to spend more than you can afford because of fear, a desire to impress anybody, or pressure from a salesperson who may try to make you feel cheap or question your commitment.

Should I Surprise Her or Should We Choose a Ring Together?

More than half of all men surprise their loved one with a diamond engagement ring, but choosing a ring together allows you to discuss things with your partner, including her feelings about diamonds versus other gemstones, size, cut, cost, etc. Shouldn't she have some say in a ring she will wear every day for her entire married life?

What Can I Expect to Pay for a Diamond Engagement Ring?

The price means little unless you understand the four factors that determine the quality and price of a diamond, known as the four Cs: color, cut, clarity, and carat size. Before you even begin looking for a diamond, educate yourself about the four Cs so you understand how trade-offs between the four factors affect price. Just do a search in Google using the keywords "Four Cs."

Here are some general guidelines on what to expect to pay:

• $125 to $500 for a quarter carat or less, set in 10 to 14 carat gold
• $500 to $750 for a slightly larger stone or possibly an 18 carat gold setting
• $750 to $1,000 for stones between .3 and .5 carats, some with a platinum or 18 carat gold setting and possibly AGS/GIA-certified
• $1,000 to $2,000 for AGS/GIA-certified, high quality stones between .30 and .57 carats or mid to high quality stones up to .75 carats
• $2,000 to $3,500 for stones from .4 to 1 carat in 14 or 18 carat gold (the 1 carat stones may have inclusions or other imperfections)
• $3,500 to $5,000 for quality 1 carat stones in 18 carat or platinum settings

If you're considering spending more than $5,000, I hope you have inherited a large sum of money and already own your own home. Otherwise, your money would be put to better use on a down payment for your first home together as a couple.

How Can I Buy a Beautiful Engagement Ring for Less Money?

To reduce the cost of an engagement ring, consider these alternatives to purchasing a diamond ring from a jeweler:

• Use a family ring as your engagement ring
• Purchase a ring from an antique shop
• Choose a stone other than a diamond
• Buy a high quality cubic zirconia which resembles a diamond so closely that even your jeweler may not be able to tell
• Buy a piece of jewelry from a pawn shop or through a classified ad and have the stone reset
• Buy several smaller stones in a beautiful setting rather than one large stone. Smaller stones cost much less.