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TL;DROn a $120,000 Sydney salary, consider spending $4,000-$10,000 on an engagement ring (1-2.5 months' income) rather than following outdated "3-month salary" rules that ignore modern cost-of-living realities. |
Tradition says you should spend three months’ salary on an engagement ring. For someone earning $120,000, that’s $30,000. In a city like Sydney, that advice isn’t always practical.
With median house prices still above $1.4 million and weekly rent for a one-bedroom apartment in the inner suburbs pushing past $700, spending nearly a third of your yearly income on a ring can make it harder to achieve bigger financial goals.
For many Sydney couples, thoughtful spending means balancing symbolism with the realities of budgeting, saving, and shared planning.
A one to two and a half months’ salary guideline gives you room to choose a beautiful ring without sacrificing the bigger picture.
Conservative: $4,000–$5,000
Moderate: $5,000–$8,000
Premium: $8,000–$10,000
These ranges reflect what many couples in similar income brackets are choosing—rings that are high in quality but still allow for home deposits, wedding planning, and travel.
Weekly rent: $700+ for an inner-city apartment
Monthly transport costs: $150+ per person
Dining, entertainment, and groceries are among the highest in the country
Future savings goals (property, children, travel)
A $120K salary provides some flexibility—but with that comes a need for smart prioritisation.
If you’re working within a $4,000–$10,000 range, here’s how to get more value from your purchase:
Opt for lab-grown diamonds: They look identical to mined diamonds and can cost up to 40% less.
Explore coloured gemstones: Sapphires, rubies, and emeralds can offer a unique style at lower price points.
Consider vintage or estate rings: These often feature quality craftsmanship at more accessible prices.
Balance the 4Cs: Choose excellent cut, slightly lower colour (G-H), and VS2–SI1 clarity to maximise brilliance without overspending.
Go just under milestone weights: A 0.90ct diamond can look nearly identical to a 1.00ct one but may cost thousands less.
Focus on quality and meaning—what the ring represents matters more than hitting a number.
Once you've found the ring, the next step is making sure it’s covered.
Some couples rely on home and contents insurance, but it’s worth knowing these policies may have sub-limits or conditions that don’t fully reflect the way jewellery is worn or valued.
Travel insurance may not include high-value items unless listed separately and may exclude jewellery in luggage.
Some insurance providers offer jewellery-specific cover that recognises the emotional and material value of engagement rings—and how they’re used in real life.
Specialised jewellery cover may include:
Cover for accidental loss, theft, damage, or mysterious disappearance
Worldwide cover—including while travelling or on honeymoon
Annual revaluation so your cover reflects current market value
No excess on theft claims (depending on your provider)
The option to return to your original jeweller for repairs or replacement
Australian-based support and claims processing
Q Report is one option used by many Australian couples. With over 2,000 five-star reviews and a focus on jewellery cover, they offer flexible policies designed for how jewellery is chosen, worn, and passed on.
Decide on a realistic budget based on your salary and other priorities
Research reputable Sydney jewellers
Understand the diamond basics: cut, clarity, colour, and carat
Consider your partner’s lifestyle and preferences
Ask for a diamond certificate (GIA or IGI)
Request an itemised receipt with all key details
Clarify return, resizing, and upgrade policies
Photograph the ring for your records
Arrange engagement ring insurance
Review the Product Disclosure Statement and Target Market Determination
Store documents securely
Plan your proposal knowing the ring is already covered
With a $120,000 salary in Sydney, spending between $4,000 and $10,000 on an engagement ring aligns with both emotional significance and financial sense. That range offers flexibility to purchase a ring that feels right without overextending yourself.
Once you’ve chosen the right piece, make sure it’s covered by a provider who understands its true value—both financially and personally.
Looking to cover your engagement ring? Get your indicative quote from Q Report.
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.
