How much should you spend on engagement ring?

The idea of proposing marriage has been around for centuries. However, it wasn't until the early 1900s that the symbol of a diamond engagement ring craze hit. The general rule of thumb is said to be 2-3 months of your annual salary. However, you should really only spend as much money as you can without putting yourself into too much debt. Any debt that you do incur should be manageable. So you should take into account your annual salary, your monthly expenses and how much income you have left over after everything is accounted for. Chose a reasonable budget that will not make you life financially tight.