Fashion & Beauty

Kevin O'Leary says you should spend on an engagement ring

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  • Feb 10th, 2018 6:47 pm
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Kevin O'Leary says you should spend on an engagement ring

Amazing video/article.
I wonder how many people spend so much money or say 3 months worth of their income fall for this crap?!?! Poor bastards fall for this crap lol.
Funny I met some girls who would love to have that shinny big diamond ring. Then there are some who are just plain AWESOME that say, I'd rather use it for a down payment on a house! That's a keeper!

Unless you're really rich and have money to spend left right and centre then by all means but most people get into debts just to buy engagement rings or a "dream" wedding.
With Valentines' Day quickly approaching, engagement season is in full swing.

For all of the lovebirds swooning over the idea of proposing to their significant other — and planning to shell out big bucks to do it — Kevin O'Leary has a dose of reality for you.

"From the day you're born, there is a whole industry of people trying to figure out how to extract money from you," O'Leary tells CNBC Make It. "One of the best at doing it are the guys that make wedding rings."

Indeed, conventional wisdom holds that you should spend one to three months' salary on an engagement ring — but that idea actually began as part of a campaign by a diamond retailer in the 1930s.

So ditch that rule, says O'Leary.

"[Ring retailers] tell you ... you should go into debt, you should put it on your credit card," he says.

"How about this idea? Don't buy one!"

"Diamond rings are really expensive, and they don't produce any dividends or any interest," he explains.

According to a 2017 report from WeddingWire.com, survey respondents spent $5,000 on an engagement ring on average. And 36 percent of people said they spent two months salary.

O'Leary proposed to his wife Linda with a tiny diamond — no setting — which he got from a wholesaler. It saved him 70 percent of what a regular ring would have cost. They later had it mounted on a band. And for his 25-year wedding anniversary, he bought his wife a much bigger 5.5 carat rock.

Why? "Frankly, there are better places to put your money until you have the luxury of being able to splurge on one, so don't buy one for your wedding," O'Leary says.

"I know its controversial, but you know what? You'll feel much better about it when it's making 6 percent [in returns] in the market every year," referring to an average rate of return in the stock market.

Investing the money instead will help ensure you don't start your marriage further in the hole.

"When ... you're starting out, the worst thing you can do is put yourself in debt for your wedding," O'Leary says. "I know it sounds romantic to spend a lot of money — it's crazy to do that.

"Tell your girlfriend/fiance/soon-to-be-wife when you have the money to invest in a ring, you'll do that," he says.

"The whole idea is to remember you're building for your future. Don't get into debt, save, save save and invest," he suggests. "It's a fantastic way to protect yourself down the road."
31 replies
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Oct 1, 2011
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Agree with him. Also makes sense to buy the expensive ring on a 10+ year anniversary considering how many marriages do fall apart before then.

But what if an individual was happy to use their own earned funds on something lavish?
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A part of me says, "if the prospective bride thinks that a puny engagement ring is a problem, that's probably a good thing to discover before you go further in a relationship".

Another part of me says, "why are you so damn cheap, that's your future bride you're talking about!"

The price of gold, and that of raw diamonds isn't hard to look up. Its reasonable to pay a few hundred dollars for fabrication , retailling and fitting costs, but not literally thousands. Inventory doesn't cost a jeweler money to carry as the gold itself appreciates over time.

But yeah, going into debt to buy an engagement ring is completely inexcusable to me. I remember girls like that from high school, wouldn't be caught dead being seen unless they were wearing designer this or that. A few that I keep in touch with on FB are now divorced as their husbands just couldn't keep up with such habits as the O&G jobs disappeared. Does a 3-year old really need genuine $200 Ray-Ban-brand sunglasses? :lol:
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Jul 5, 2005
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O'Leary only says that because all of his business dealings are further downstream in the wedding industry.
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peanutz wrote: Agree with him. Also makes sense to buy the expensive ring on a 10+ year anniversary considering how many marriages do fall apart before then.

But what if an individual was happy to use their own earned funds on something lavish?
Exactly its so easy to get a divorce these days.

At the end of the day we all decide to do what we want with our money. Its "your money or the banks' money". The problem sometimes is that lots of people spend money they don't have or "own".
http://www.cbc.ca/news/business/debt-ca ... -1.4487919

Most people buy expensive engagement rings to impress the fiancee and her friends, as you noticed they like to show off the ring.

Its one thing to be cheap and its another thing to be smart with $ and let it grow! Lots of couples start their marriage in debt!
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Jan 29, 2017
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Title should be: Kevin O'Leary says you should NOT spend on an engagement ring

He is against spending.
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Apr 5, 2016
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If the wife doesn't value financial prudence then good luck trying to convince her of this plan. I'm in if she's willing.
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BRAISKI wrote: Then there are some who are just plain AWESOME that say, I'd rather use it for a down payment on a house! That's a keeper!

Yes. Sure. She's definitely smarter than you as house will be worth much more come divorce time than a shiny ring.
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Dec 21, 2011
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$700 engagement ring person here and perfectly happy. I love all my friends and girls but don't get the expensive ring thing .
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Dumbbelldore wrote: If the wife doesn't value financial prudence then good luck trying to convince her of this plan. I'm in if she's willing.
Not sure if she'd be a keeper then, the guy would be an idiot going in to the marriage and hoping to change her lol.
BiegeToyota wrote: Yes. Sure. She's definitely smarter than you as house will be worth much more come divorce time than a shiny ring.
Ya and that's why there's a pre-nup! Most people are too scared to do a pre-nup or just "blindly in love". Sounds like you've been screwed?
snow00774 wrote: $700 engagement ring person here and perfectly happy. I love all my friends and girls but don't get the expensive ring thing .
Good for you! Its bragging rights really, or in other words its the measure of your love for her (AKA how much you $ you spend on her) Smiling Face With Open Mouth And Smiling Eyes
Last edited by BRAISKI on Jan 19th, 2018 8:34 am, edited 1 time in total.
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In another world
Many women take off after they get an expensive engagement ring and don't return it.
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hugh_da_man wrote: O'Leary only says that because all of his business dealings are further downstream in the wedding industry.
+1
i was confused by the title of the thread too
:) Love is too beautiful to be hidden in the closet ;)
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BRAISKI wrote: Ya and that's why there's a pre-nup! Most people are too scared to do a pre-nup or just "blindly in love". Sounds like you've been screwed?
Prenups in Canada? Good luck with that,

Have I been screwed? No.

Perhaps my Thai wife is as I live in her house rent free.
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Mar 14, 2005
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BiegeToyota wrote: Prenups in Canada? Good luck with that,

Have I been screwed? No.

Perhaps my Thai wife is as I live in her house rent free.
Dude, u r such a one-trick pony.
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Mar 14, 2005
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peli33 wrote: Title should be: Kevin O'Leary says you should NOT spend on an engagement ring

He is against spending.
But O'Leary wears Hermes silk ties all the time.
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I made it clear to the gf that her ring with either be a clearance deal, a price error or something involving optimum points
When given enough time, all threads on RFD can and will go off on a tangent.
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I didn't go into debt but I spent a lot of money (I think) on my wife's wedding ring. My justification is she hasn't got a lot of jewellery from me now, I don't think she will in the future and she will wewr the ring every day for the rest of her life. It was important to the two of us.
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gontori wrote: Many women take off after they get an expensive engagement ring and don't return it.
Are they provided with a gift receipt?
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Sep 7, 2009
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So moral of the story is that girls should marry rich guys so they don’t have to go into debt to purchase a fancy rock?

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