CarefulBuilder14 wrote:Your work contract may be guaranteed, but if you're injured your income might not be guaranteed, unless you have a ton of disability insurance.
Did your income only rise a lot recently? Or you've been paying down debt? What do you have in long-term savings? Are those savings in taxable accounts or tax-deferred accounts? Are they invested in cash-equivalents or potentially volatile securities? I'm having a little trouble understanding how you can make great money, spend very little, and yet not have more saved. Perhaps the long-term savings pool is really big and that's where it is.
If you have an investment portfolio around $200k or above that you can access without a lot of IRS penalties, then $30k on a ring might be reasonable. But it you'd have to take money out of a traditional IRA/401(k)/403(b) then $30k might just be too much.
Your answers may very well change my advice, but it sounds like you might be better spending a lot less on a ring. I'm assuming, but did not ask earlier, that you are a male buying an engagement ring for a female. (Social libertarian here, just don't want to get pronouns wrong). You can always get her something nicer on a later anniversary. Does she really want that particular ring, or is it more you wanting to get her something great?
Edit: As far as my last sentence, I was asking whether you had a huge amount in savings but tried to live off of your paycheck and make big purchases out of current-month disposable income. Someone who can get $30k of disposable income over the course of a month or two would usually have more in taxable savings if his everyday expenses were very low.
True, but I do have a large disability policy in place
My income just rose within the last 2 months. My long-term savings are in good shape and virtually everything in tax-deferred accounts with plans to contribute to taxable accounts once I get this pesky ring out of the way. The tax-deferred accounts are roughly split between cash equivalents and volatile securities. It is sadly nowhere near 200k and I don't want to access any of it for the ring
I have heard that advice a fair amount re: spending less on the ring so maybe I will actually heed it. I am a male buying an engagement ring for a female. She is incredibly laid back and doesn't care what kind of ring. As we have been dating for more than 5 years now though, she just wants to get married. It was my idea to spring for something a bit spiffier given my recent income spike
And finally, I gotcha. Yes that should be true for someone who can get 30k of income within a period of 2 months but like I mentioned, my income just rose recently.