How much you should spend on engagement ring if you make $400,000 a year in Australia depends on personal finance, but traditional guideline is 1 to 3 months salary, which would be $33K to $100K for $400K income, but modern advice is spend what you can afford without debt, typically $10K to $30K for $400K earner. For $400K annual income, after tax $280K, monthly $23K, spending $20K to $40K on ring is 1.5 to 3 months net is reasonable, allowing you to buy 1.5 to 2.5 carat diamond ring $15K to $40K, which is impressive. However, many financial advisors suggest spend 5% to 10% of annual income on ring, which for $400K is $20K to $40K, avoiding excessive debt. For example, 1 carat diamond with setting $10K to $15K, 1.5 carat $15K to $25K, 2 carat $25K to $50K, depending on quality. If you have low expenses and savings $100K, you could spend $30K to $50K for 2 carat. If you have mortgage $500K, better spend $15K to $20K. So for $400K income, spend $15K to $40K on engagement ring, with average for high earners $20K to $30K, which gets high quality diamond, but do not go into debt, spend what you and partner comfortable with, as ring is symbol not investment.
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