You’re in love and ready for those four sweet little words, “Will you marry me?”

But as a couple, have you discussed a savings strategy so that you’re both happy with the sparkle on her finger and the strength of your bank account?

Are you ready to part with the three months’ salary the diamond industry has suggested as standard practice?

If you don’t have thousands of dollars stowed away specifically for an engagement ring, don’t worry! You don’t have to spend as much as 3 months of your salary and you don’t need to pay all cash.

First, figuring out a number that sits well with both of you can be a stressful and highly unromantic endeavor. Engagement rings are a unique investment because they come with both financial and emotional expectations.

How much you should spend on this token of love rests in striking a balance between a dazzling, romantic gesture and maintaining the stability of your finances. And while there are ways to cut corners and save responsibly, sometimes love just can’t wait.

Here are 3 strategies for financing an engagement ring, along with the pros and cons of each.

1. In-Store Financing

Most major jewelers offer financing options, some of which feature 0% interest for a limited period of time. This is most likely the best option if there isn’t quite enough cash in the bank to walk out with the ring you want. Plus, there are no additional downsides with choosing your jeweler for financing over a bank either.

It’s important to get all the details when choosing financing from your jeweler as the loan terms will vary wiedely. While some jewelers will use a finance plan similar to a traditional loan, others will use a plan similar to a balance on a credit card.

In either case, you must find out what the total amount you’ll pay in the life of the loan, which includes principal and interest. Additionally you’ll need to know the monthly payment.

In most cases, the monthly payment will be lower than what you budgeted for. If this is true, don’t pat yourself on the back just yet for getting a good deal. If your monthly payment is lower than expected, that means you’ll be paying more a lot more in interest and for a longer period of time than necessary. Always pay as much as you budgeted for to reduce the amount of interest paid and to pay off the loan as soon as possible.

2. Personal Loans

Personal loans can be an alternative to financing. You won’t score an interest-free financing term from your bank, but you may qualify for a loan with a low fixed rate that lasts anywhere from 12-48 months depending on your credit. Check out https://www.arcct.com/long-term-loan.html, it seems like they provide loans with longer terms.

An advantage to this type of financing is that your payment will be a fixed amount each month until the loan is paid off. Just like a car payment or a phone bill, you can plan ahead and set aside that sum each month.

There is no risk that you’ll see your rate hit the roof if you fail to pay off the balance before the promotional rate expires; however, securing a good deal on a loan will largely depend on the strength of your credit score.

The better your credit, the lower your interest rate. You can check your credit for free online, but ultimately, the bank will have to check your credit to give you the interest rate you qualify for. In most cases, getting financing from a local credit union will give you a much better rate than a big national bank can.

3. Loans from Friends and Family

While out of the question for many people, borrowing a little from mom and dad to pay for a ring is more common than you might think.

A Consumer Financial Literacy Survey found that for 27% of Americans, friends and family members would be the first resource they would turn to when they need money fast.

The advantage of this type of loan is that they can carry a low interest rate – even 0%, and they don’t appear on credit reports. But when money enters the conversation, it can be easy to alienate people we love.

If you can’t keep up with payments, there’s bound to be tension that could put a strain on your relationship with the lender – and between you and your partner.

If none of these are options for you another way to finance not only your engagement ring but also your wedding and honeymoon costs are by selling your life insurance policies for life settlements deals.

But Most Importantly…

However you and your fiance-to-be plan to finance the bling, consider your future financial goals and be sure to read the fine print.

We can’t stress this enough: Read the fine print!

Our finances are already stressful and there’s enough stress when planning and paying for a wedding, so borrow smart!