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Should I feel bad that I can't afford a ring for my fiancee?

I've tried but I can't.
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No, you shouldn't. Spending money you don't have on a ring would prove to me you're not financially stable or sensible enough to marry.

Here's why engagement rings are a BIG THING now.

"We'll have to go some 75 years back. Around the 1940s, de Beers (enormous company that at one point owned 85% of the diamond market, from mining to retail stores) launched a brilliant ad campaign that equated a diamond with love. This gave birth to the modern diamond engagement ring phenomenon. (Source: https://www.creditdonkey.com/history-engagement-ring.html)"

We've been had - again - by marketing.

It makes no sense to buy a ring when it may mean rent money will be tight and you'll worry about groceries. De Beers doesn't need your money. You and your love do.