Avoid I1, I2, and I3 clarity diamonds for an engagement ring. They may be cheaper diamonds, but the flaws can be visible to your eye without aid of magnification. In general, it is preferable to purchase engagement ring stones with a clarity grade of SI2 or better.
Clarity is the purchasing factor that can be "stretched the farthest" when choosing a diamond. Most better quality diamonds do have some imperfections, but they are not visible to the unaided or "naked" eye, and are even less noticeable after the stone is set in your mounting.
Some may even prefer some flaws as they add personality, character, and individuality to your stone. Consider the lower qualities for earrings and pendants, which are generally admired from a further distance than an engagement ring.
Adjusting your clarity choice will greatly aid in fitting your budget. 
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