what to buy and how to save?

[jw01]

So i must admit, i have been pretty good laying low from terb activities. i sadly realized how much $$ i wasted over the past few years and regret it ....im not on a rant but hoping i did not get involved in this hobby lol even tho i had some good times.

that said, ive come to realize the $$ i wasted here couldve helped me pay for a new downpayment for a house and or engagement ring.

so as it stands, i have not managed to save much money, due to my stupidity. i want to buy my girl an engagement ring but have $2 put side. i dont know how much to spend. obv i have spoilt her so she expects something big...even tho i am sure she would be OK with something modest. in addition, i would like to at sometime buy a house.

where do i start...how much should i pay for a ring....how should i start saving for a house?

i am sure alot of you have experience so figured i would throw it out there and see.

thanks.

cheers,
man in desperate need of help lol

 

[Celticman]

For the ring 3-5K

for a modest house outside the GTA, or a condo in the city, 25% down means that you do not pay CMHC insurance premiums. I would say that you should shoot for 75K, but that is a big nut if you are starting from zero. If you are both working and earning a decent combined income, it is easier to save the 75K, or go in with a lower amount, pay the CMHC insurance premium, and work towards paying down the principle after you move in with annual lump sum over and above payments. Log on to the CMHC website, educate yourself there, then find a good realtor to work with. You need a strategy.

 

[oil&gas]

Buy a zirconia engagement ring. That should save you as much as buying a diamond
ring at a 99% discount.

If staying in Toronto is not a must you can still find decent and affordable
housing in various locations in southwestern Ontario. Cambridge and London
are two cities I would look to for relocation is cost is a concern.

 

[Imperius]

how much should i pay for a ring....how should i start saving for a house?

For the ring 3-5K

Regarding the ring, I agree with Celticman. Spend between $3.00 and $5,000.00. The closer to $3.00 the better.

Regarding the house, go in with as big a down payment as you can afford, keeping in mind that:
1. Don't completely drain all your savings. Remember there are a lot of costs to home ownership besides the purchase price, so leave a decent amount of financial gas in the tank.
2. Any money that you are planning to use in the near future for ring and/or downpayment should be in a "safe" investment, i.e. GIC or high-interest savings account. It shouldn't be in the stock market. Yes, GICs/HI Savings pay almost nothing these days. But don't risk your money if you need it in the short-term.
3. When buying a home, keep in mind that interest rates WILL go up over the 25 years or so it will take to pay off your home. Don't take the maximum mortgage the bank is willing to give you. Give yourself some breathing room expecting that your monthly mortgage payments will rise at some point.
4. If you have RRSP room, consider using the home-buyers plan (HBP). And when socking money away into this RRSP for the purpose of buying a home, refer back to #2.

 

[Petzel]

Buy a zirconia engagement ring. That should save you as much as buying a diamond
ring at a 99% discount.

If staying in Toronto is not a must you can still find decent and affordable
housing in various locations in southwestern Ontario. Cambridge and London
are two cities I would look to for relocation is cost is a concern.

It's not a real diamond so fuck that!

 

[Petzel]

The approx. amount is slated is 2 months of your salary to spend on a ring.

 

[TeasePlease]

The approx. amount is slated is 2 months of your salary to spend on a ring.

That's the rule of thumb. I don't know where you guys are getting this $5K business from. Most of the rings I see are $10K and up. Ten years ago, 1 carat was the standard; now it seems more like 1.5 to 2.0 carat.

As for saving, I have a similar problem. I love my toys. Keeping a balance in my bank account is just dangerous...I'll spend it.

I've found that two things work for me: Having a specific goal in mind (could be buying a ring or a house) and setting up a separate bank account for that purpose, or setting up an automatic withdrawal for an investment account. Have your investment advisor set up an automatic $500 or $1,000 transfer every couple weeks or month. Put it into bonds or something relatively safe (since you'll be needing the money soon). Out of sight, out of mind...

 

[Leafs85]

Check out Spence diamonds, after all, it's the diamond you're really paying for and they have diamonds for every budget.
You can put money into a TFSA account and invest in some relatively safe stocks to grow your downpayment and take it out tax free when you're ready. Also, you used to be able to borrow from rsp's for a downpayment but I'm not sure if this is still possible...just my 2 cents.

Yes you still can for first time home buyers plan up to $25,000.

 

[pusher69]

Dont buy from Spence... retail markups and their diamonds aren the good. If you want to save, buy the diamond at wholesale price without the ring setting.

To avoid CMCH fee, its minimum 20% downpayment on a home/condo. It was lowered from 25% years ago to reflect the price increase in homes. Note, that the less you put down, the higher the mortgage rates lenders will offer you.

Ring: standard is 2 months gross (before taxes) earnings. People make more now and diamond prices have either fallen or have been stagnant compared to inflation...hence the size increase from 1 carat.

Buy what you can afford and don't get caught up in the "keeping up with the Jones" if you do not have the capital.

 

[Leafs85]

Also don't go to a big name like Spence. You will pay more then you should. I like going to family run stores. Of course there are shit ones and great ones so you should see a few. The place I when to I told them the diamond size grade cut etc and the owner buys the diamonds himself.

 

[jw01]

hey guys

thanks for the great input....i just googled cartier and email them for a quote, just to see ballpark what they offer...and man, got an email for 1 carat for ~$23k WTF!

now that is a downpayment for a house lol....been talking to my buddy who is really good with $ and he's like when i propose, i would spend no more than $1k lol and he's relatively rich....but not sure if he is just saying that for now.

either way, i was thinking about purchasing a dimond seperately and putting the ring together. i remember my dad went to holland got some good deal there so thinking about checking out holland as my dad frequently visits (pilot). the bad part is, my gf saw my email with the quote from carter, she said that is insane, but now im worried she will be expecting a cartier and nething less will look cheap :S

what to do lol

 

[fuji]

Take the gf around to look at rings, then go back alone to get one you both like and she had approved of. Fool her into thinking you are going to save for it when you already have the cash set aside, or some other ruse, so the proposal still has an element of surprise when it comes.

No reason why you have to make this decision alone, and if she helps make the decision she won't blame you later for spending too little OR too much.

I spent about one months income on a ring that she picked, and she herself rejected another much more expensive ring based just on price, specifically telling me she would rather put it towards a home (we were renting at the time ).

Women aren't dumb they know the tradeoffs.

 

[movzzz]

Your girl will appreciate a bigger house more than a flashy ring.

The novelty wears off on the ring but having enough room to put you in the dog-house while you're still IN the house... PRICELESS!

 

[afterhours]

Buy a zirconia engagement ring. That should save you as much as buying a diamond
ring at a 99% discount.

If staying in Toronto is not a must you can still find decent and affordable
housing in various locations in southwestern Ontario. Cambridge and London
are two cities I would look to for relocation is cost is a concern.

I wonder how common is it that women go to jewelers and check the rings that they got

 

[jw01]

Your girl will appreciate a bigger house more than a flashy ring.

The novelty wears off on the ring but having enough room to put you in the dog-house while you're still IN the house... PRICELESS!

that was well said LOL love it!

 

[jw01]

for all those that have bought a ring

would purchasing a dimond by itself for 2k get me a decent size rock? my gf likes the rectangular shape rings.

thxs for the help