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Matt: it hit me, she was the one for me, I decided I should either marry her or stop seeing her.

Mike: Wow

Matt: Really, and since I've proposed everything has been perfect, I feel like a million bucks. it was the right decision.

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To propose is given by the Oxford Dictionaries thus

propose
VERB

2 Make an offer of marriage to someone.
I have already proposed to Sarah

So your sentence

Really, and since I've proposed everything has been perfect, I feel like a million bucks.

means

I am serious, and now I have I asked her to marry me everthing has been perfect, I feel great.

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