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Living on a Budget, Saving Money/Engagement ring on credit or cash?


Hello Ericka, so I purchased an engagement ring for my girlfriend and I was considering just taking from my savings and paying it off with cash instead of making monthly payments. I believe the APR is around 5% or so and the ring is very modest at $700. Would I be foolish to empty my savings for this or just make the monthly payments?

Thank you, Jared C.

Hi Jared:

Thank you so much for choosing me to assist you on your financial journey. If I understand you correctly, you want to know should you finance the engagement ring or pay cash. Congratulations, on your upcoming engagement. Marriage is beautiful experience when both people work as a team.

My first recommendation is for you to consider the uncomfortable feeling you have when you think of “emptying” your savings. I always like to keep cash in reserve as an emergency fund. Since the engagement ring is a planned expense, I would recommend you save the additional money just for the ring purchase.  The engagement ring is just one expense in a series of expenses for a wedding. I would save financing anything as a last resort.

My second recommendation is for you and your future wife to dialog about finances. You can discuss where you are currently and what dreams you have for the future. Together, you can read books and take classes.  

It sounds like you have concerns about starting the engagement off on the right financial foot.
Thank you for being proactive, I hope this helps.

E.B. Joseph  

Living on a Budget, Saving Money

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Ericka Joseph


The budget is a guaranteed way to track your money and develop money discipline. I am open to answering any questions which concern customization of a budget and using tools to help you stay discipline. I will also answer about creating and maintaining an emergency fund. Although I can speak about long-term financial planning and investing, I will choose to only focus on the fundamentals I use for my financial success, at this time.


I have achieved every financial goal I have set in the last 14 years to include being debt free in the last eight years. I teach my budget class online on Udemy.


I am a retired U.S. Marine of over 20 years. I am the CEO of Plan2Win Solutions, LLC and currently a Homeschool Mom. I hold a BA in Psychology from Chapman University of Orange, CA and AA in Business Administration from Strayer University of Washington, DC.

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