What should I upgrade first on my budget system?

A system is built around a good speaker pair.  I 'm not familiar with your speakers.  Make sure you're happy with them for the long term.  A few more dB would be nice for your tube amp.

That amp will probaly do you well for a while.

I'd then look for the best dAC you can afford.

Jerry

Perhaps some room treatments is where I would look, first. 

Have you looked into other turntable cartridges?

I think your speakers are probably the best component in your system. Typically you start there. But in your case I think you may wait until last. 

I always try and get a big improvement with each new component. 
 

I try and build all components to a new and higher level. Never investing less than double… hopefully more. 

I would probably look for a preamp first… it is central and is so important of setting the tone. Then amp. But one could argue you may get more bang for the buck with the amp first (pun intended). 
 

Next a DAC… which will elevate your digital play… at this point you may use a laptop or other source as a streamer until you can afford a stand alone streamer. Streaming today can easily exceed your CD player in sound quality and replace buying CDs, allowing nearly infinite music for $14.99 per month (Qobuz). 
 

Then you would be ready to upgrade your speakers.

I would look for used audiophile equipment less than say 15 years old. Especially for the preamp and amp. 

@coryb are there aspects of the system that you do not like? Or things that you feel it should better?

(that is where I would start.)

Usually a highpass filter to your amp/speakers… and adding a sub to fill in the bottom would often free up the amp and speakers.

but… that assumes your amp and speakers are over taxed with low notes, or that you want more SPL in the low registers.

So I am not sure there is a rational reason to upgrade without some goal or thing to improve… and maybe just going slow is best?

(And enjoy what it does for now)

 Start from scratch, asking for advice on an audio forum.

@carlsbad +1! Speakers offer the best-bang-for-the-buck! I can only recommend what I use: DCM Time Windows and Ohm Sound Cylinders. Two great classic designs that can be found at affordable prices. Both are competitive with today's four-figure speakers! 

The rest of the OP's system is fine! Depending upon how much he has invested in LP's a cartridge upgrade would be good. A Hana SL plus an SUT is an easy recommendation. Keep the PS Audio preamp and the Will Vincent Baldwin tube amp. Both units offer excellent sound quality! 

@ghdprentice : I think you are mistaken when you state that streamer sound quality is better than CD. You are at the mercy of whatever compression schemes the streaming services use to squeeze their data files to fit on the digital pipelines! No thanks! I will stick with my CD players/transports and extensive CD collection. 

For a DAC I can recommend the Khadas Tone Pro 2 for around $249. Keep the Rotel in use as a transport. I have the less-costly Khadas KTB. Both are competitive with any DAC below $1K.

@jasonbourne52 Your mention of having DCM Time Windows and the Ohm made my day. I use to sell them way back when. Great speakers. The Time Windows blew my mind. Haven't heard them in too many years to count, but they would give many speakers today a run for their money. Thanks for the memory.

no you guys are all wrong, a great system is built around the source, without that nothing else matters.

@coryb 

If you own the place, I would think the least expensive and most durable upgrade you can tackle now is to run a dedicated power line to your system together with a whole house surge protector. The whole thing will cost you less than $500 (depending on location) and you would not have to do it again ever. You can read on the importance of a good power source elsewhere, but it will affect your entire system. Good luck in your journey. 

+1 spenav & +1 paradisecom

To better answere your question more info is needed.

Have you optomized your room for playback?

Which Rotel CD player do you own? Does it have digital output?

Is there a priority betaeen vinyl and digital?

What is budget for upgrade?

op’s speakers

http://www.coincidentspeaker.com/dynamite-loudspeaker.html

The Preamp has very desirable features. I might consider it great value, inexpensive, but not cheap.

the tube amp appears well built, evidently maker has good reputation

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I’ll presume the speakers perform well in the space.

I would go for more power, to deal with instantaneous needs.

this is why using stereo amps that can be bridged as mono can be a good choice. Of course from a brand likely to be readily available.

Turntable: I do not like ANY of these turntables with tonearms that lack removable headshells. However, who knows, for some a single darn good cartridge, especially factory aligned might be best.

@coryb

Room treatments are pretty boring. They just hang on the wall and not much fun to play with. But, as other’s suggested, I’d make these the #1 priority in your upgrade plan to improve sound quality.

I’d hang a better cartridge on the end of the tonearm.

IF the Rotel has digital output(s), a good DAC will add rocket fuel to your physical media.

You mentioned you’re in Montana. Sorry, just couldn’t help myself and added this link.

Frank Zappa:  Moving to Montana

The right Cd/amp power cable upgrade can be as good as new component.

@digsmithd +1

I would not call it a budget system.

Biggest bang for the buck? The turntable?

I know nothing about your speakers but they look very serious. Not the best match to your amp though, depending on your space/room size  (very broad generalization: if you are in Montana, your room may be big :) )

Room treatment, power conditioner, OCC interconnects and speaker cable, isolation footers, etc.

Good/right footers on my sim player made huge difference...good call dweller.

Upgrade power cables.

Serious question: why do you feel the need to upgrade any of them?

If one really bugs you, then that one.

If not, then you have lots of highly recommended upgrades: power cords, interconnects, speaker cables, Nobsound springs, Townshend Pods.

Nobsound springs in particular, awesome upgrade on a budget system. Best $30 you will have spent so far. 

I would look to upgrade the preamp first to a tube preamp.  Organ amps make wonderful audio amps because of the heavy duty transformers they use and the fact that Will Vincent made it, I’m sure it’s an amazing power amp.

Also, I don’t subscribe to the Ivor Tieferbrun philosophy to get the best sources possible because everything else is downhill from there, although it certainly makes a great deal of sense.

I once heard at an audio show an incredible sounding setup by Robin Wyatt, Robyatt Audio that featured an amazing Italian SET amp being played with AER Lamhorn single driver speakers using very run of the mill sources - a Sony close n play tangential TT, a first gen Technics transcription CD player, and a Dyna FM3 tuner.  After hearing this setup, I became a firm believer in great electronics and speakers could make mediocre sources really shine.

A Music Reference RM5 mkII is an excellent sounding preamp that mates well with lots of gear.  I owned one for 5 years and partnered it with several tube and SS amps and it always delivered.  I’ve seen them selling in the $5-700 range and I greatly prefer a tube preamp to go with a tube amp, instead of a SS pre with tube amp.  A tube pre with a SS amp is a preferable combo than the other way around.  Just my $.02.  Thanks.

Thanks for your responses. I do have all anti cables for interconnects and a Morrel power cord. But I don't get DACs yet. Someone said I need a good DAC. Would I need one for my cd player and PONO and preamp? Thanks. 

Rotel, absolutely the Rotel.  Rega Apollo replacement perhaps.  It's the Rotel.  I'm sure of it.  Have fun.

But I don’t get DACs yet. Someone said I need a good DAC. Would I need one for my cd player and PONO and preamp? Thanks.

A DAC is only for CD and.or streaming.
Whether you need one, and whether it sounds better is another thing.

How do you like your phono side?

If neither digital nor phono is bringing joy, then it could be speakers… but I don’t know yours.

If in doubt, then my advice is to go slow and try to have some solid reason for making a change.

So far you have gotten room treatment, power to the room, power cords and conditioners, DACS, ICs (I do not recall speaker cables). But that is a lot of approaches without knowing whether they are addressing a way to mitigate or ameliorate some causal mechanism that may or may not exist.
(But the room treatment stuff is likely the safest bet… IMO)

How you are to make sense of the wide disparity of advice is beyond me to comprehend.