Dear Dave,

I’m 24, and I would like to buy an engagement ring. I plan on asking my girlfriend to marry me within a month, and I was wondering how much I should spend on the ring.

I make $85,000 a year, and I have no debt. In terms of savings and retirement, I’ve got about $40,000 in a high-yield account, plus $10,000 in my pension fund.

— Hayden

Dear Hayden,

That’s awesome! You’ve got a great start in life, too, based on the figures you gave me. Congratulations on all your success.

Now, let’s get down to the business of buying a ring. How much should you spend? Folks in the jewellery stores will tell you three months’ income. Don’t listen to them. One month’s income is plenty.

There’s nothing wrong with a less expensive ring when you two are just starting out. And more importantly, there’s no correlation between the size of the ring and the probability of the marriage being a success. High-quality marriages are not based on the size and price of the engagement ring.

The day I asked my wife to marry me, the diamond I put on her finger was just a speck. You practically had to squint to see it.

We’ve upgraded that one substantially since, but we’re in much better shape financially. Now she’s got a headlight she can wear on her finger. That’s what you get when you’re willing to put up with me for 43 years.

Last thing, make sure you shop around before you buy. Learn a little bit about diamonds first. And don’t fall for the old line about diamonds being an “investment.” They’re not.

Most diamonds, especially standard mined diamonds bought at retail, do not go up in value and often lose significant value as soon as you buy them.

Now, truly rare, high-quality, and natural fancy-coloured diamonds can appreciate over time due to their high demand and limited supply. But that’s a different story.

Best of luck, Hayden. I hope the young lady in your life says yes, and I hope you have long, happy lives together!

— Dave

• Dave Ramsey is an eight-times national bestselling author, personal finance expert and host of The Ramsey Show. He has appeared on Good Morning America, CBS This Morning, Today, Fox News, CNN, Fox Business and many more. Since 1992, Dave has helped people regain control of their money, build wealth, and enhance their lives. He also serves as CEO of Ramsey Solutions