What would YOU do?

Well you asked what I'd do....

I would invest 50% of the money in upgrading the diamond and 50% in an interest bearing account for a future splurge for myself and/or my family.

I know, I am way to practical! LOL

You and I think alike. I was going to tell her to just invest the money...LOL. I am practical as well and I actually love that I am this way. I would upgrade the diamond certainly and then save/invest the rest of the money. Perhaps you can buy yourself an accessory as a treat in addition to the diamond upgrade but save the rest.
Don't look for things to buy...this is often what people do when they come into a bit of money. They blow it and just look for things to buy--things they will later regret purchasing. If you don't really want any bag..don't buy one at all.
 
Can you get one bag and a diamond? I personally enjoy my bags more then my rings. I just got a new ring about 2 years ago by Tacori and had it set with a deep blue sapphire stone, I just don't like diamonds that much now and seem to like the colored stones which give such a different look. Since I am on a major cleaning, decorating, painting and tearing down wallpaper I hardly wear my rings but I can always grab my purse.

I say get both.
 
mm this is hard! Personally if my husband purchased my wedding ring, I would not pay myself to get it upgraded. I would wait for like a 10 year anniversary for hubby to do it. I would get a nice bag from the money a limited edition and save the rest. You dont have to use the money straight away! You could always buy yourself some jewelry, but i wouldnt buy myself a new wedding ring. Thats just me! x