3. DECIDE ON YOUR BUDGET

The diamond industry tries to convince you that a ring should cost you two months salary. If you want to go along with that, fine, but don't spend money just for the sake of spending money. If you see the perfect ring, but its price is less that two months of your salary, then just pretend like it cost more and pocket the difference. If, however, you are obsessed with tradition, use the "two-months-salary rule" as your guide.

Once you have decided on a ring, the most important thing to remember is this: NEGOTIATE. It's just like buying a car; you are expected to negotiate the price. In his book How To Buy a Diamond, Fred Cuellar explains, "when buying a diamond, keep in mind that the average jewelry store charges double what they should, so never pay sticker price." You may think that it's intimidating to go into a fancy jewelry store and haggle over the price. Fuggedaboudit. Jewelers are just car salesmen without the complimentary donuts.