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TL;DR
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The traditional “three months’ salary” rule would put your engagement ring budget at around $30,000. For most Melburnians in 2025, that’s not realistic—or necessary.
Melbourne’s cost of living is among the highest in Australia. Median house prices hover around $922,500, and renting a one-bedroom apartment in the inner suburbs can easily exceed $550 per week. Add in transport, groceries, and rising interest rates, and it’s clear why couples today are choosing engagement ring budgets that align with their bigger financial picture.
Spending one to two and a half months’ salary gives you room for a stunning ring without undermining plans like home ownership, travel, or wedding costs.
Here’s a practical budget framework based on a $120K salary:
Conservative: $4,000–$5,500
Moderate: $5,500–$8,000
Premium: $8,000–$9,500
This range helps you find a high-quality ring while keeping your broader life goals intact.
Inner-suburban rent: $550+ per week
Average VIC wedding: ~$37,000
Weekly transport: $100–$180 per person
Cost of living index among the top 4 in Australia
Want to maximise what you spend? Try these strategies:
Lab-grown diamonds: Typically 30–40% less than natural diamonds of comparable size and quality
Gemstone alternatives: Moissanite, sapphires, or emeralds offer character and affordability
Vintage rings: Unique designs with potential savings compared to new retail
Diamond quality over size: A well-cut 0.90ct diamond can appear nearly identical to a 1.00ct diamond at a lower price
Balanced specs: G–H colour and VS2–SI1 clarity often hit the sweet spot between beauty and value
These decisions focus on how the ring looks, feels, and suits your partner’s style—not solely on the price tag.
After you choose the ring, it’s worth thinking about how you’ll cover it.
While you can sometimes add jewellery to home and contents insurance, there may be limitations:
Low item sub-limits (e.g., $1,000–$2,000)
Limited or no cover outside the home
Excess fees on claims
Restrictions on where repairs or replacements come from
Some specialist providers like Q Report offer policies designed specifically for engagement rings. Depending on the policy and eligibility, cover may include:
Loss, theft, accidental damage, or mysterious disappearance
Worldwide cover for honeymoons and proposals abroad
Annual revaluation so your cover reflects current market value
Return-to-original-jeweller replacement options
$0 excess on theft claims
Australian-based claims and support teams
This type of cover is tailored for how people actually wear and value engagement rings—every day, everywhere.
Set your budget in the 1–2.5 month salary range
Research Melbourne jewellers and reviews
Learn the 4Cs (Cut, Colour, Clarity, Carat)
Consider your partner’s style and daily lifestyle
Request GIA or IGI certification for diamonds
Get an itemised receipt and keep it safe
Photograph the ring for records
Ask about resizing and return policies
Arrange cover with a specialist jewellery insurer
Review the PDS and Target Market Determination
Store all documentation securely
In Melbourne, where the cost of living is high but quality matters, $4,000–$9,500 is a practical engagement ring budget for a $120K salary. This range allows you to create something meaningful and beautiful while staying on track with future goals.
Whether you’re buying a ready-made design or creating something custom, your budget should work for your life—not against it. And when you’ve found the ring, consider specialist cover that’s made for it—because a ring that symbolises your future together deserves cover that supports it wherever life takes you.
To get an accurate insurance quote, please provide the amount from your purchase receipt.
Don't have the receipt?
If you don't have the receipt, you can provide the most recent valuation amount instead.
