I payed about $1600 for both the engagement ring and wedding band combined. Custom made though so noone will have one like it unless they happen to miraculously choose the same design, etc.
I was originally planning on not going over $1200 as I agree that it is not the smartest thing to go overboard and put a strain on the marriage by being in debt for a monster ring, etc., but it is very hard to find anything nowadays in that price range.