What is 3 month ring rule is traditional guideline that you should spend 3 months salary on engagement ring, originating from De Beers marketing campaign in 1930s and 1980s to increase diamond sales, suggesting spend 1 month salary then 2 months then 3 months. For example, if you earn $60K per year, monthly $5K, 3 months salary = $15K ring, if you earn $400K per year, 3 months = $100K ring. However, modern financial advice says 3 month rule is outdated and marketing gimmick, as it encourages overspending and debt, with average engagement ring in Australia $5K to $6K, not 3 months of average salary $70K which would be $17.5K. For $400K income, 3 month rule would be $100K ring, which is excessive for most, with many high earners spending $20K to $40K which is 0.6 to 1.2 months salary. So 3 month ring rule is old marketing rule that you should spend 3 months salary on engagement ring, but not required, spend what you can afford without debt, typically 5% to 10% of annual income or 1 month salary, with $5K to $15K for average earners and $20K to $40K for $400K earners being reasonable, not $100K, as ring is symbol not investment.
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