How do you determine how much to spend on speakers

If you budget is a bit restrictive it should not make things to difficult,however that doesnt mean you will get what you want but it may mean you will be able to succeed with the hard choices.The question was not how much but when and what? I spent less than that and truly I was never more satisfied.The speakers actually came last,and cables were not a problem.One of the lessons that this type of thinking allowed for was the value that you personally cared for and something related and that was the quality of the purchase.I learned the value of what good amplification means because that was my first purchase.If you do some reading about all those numbers that appear in owners manuals and the like it will help you understand the relationship between the preamp/amp/ and the effect that they have on the loudspeakers ability to express the content of a disc or even lp. A good amplifer is your answer to your investment in how much to spend on loudspeakers . However things were to work out for me I spent 1,700.00 on a integrated amp and next 1,500.00 on a cd playback and last but not least I got an excellent deal on the loudspeakers that I so desperately wanted.They were to cost me a little more than 1,200.00.I waited a while and though it was not the only way it was simply a sale that appeared in the newspaper and I made a serious decision, I thought it through carefully and I can tell you very happy stories of the experience that that provided me with.This was not done overnight because I had other things that took precedent,like being honest,however I, to this very day never regretted it.Good Luck

I would spend more on speakers and power amp basically.

My suggestions:
1. Speakers: $2000
2. Power amp: $1000
3. Preamp: $800
4. Digital Source (CD player or Transport+D/A): $800
5. Cables: $400

I would recommend to purchase mint condition used stuff with your 5k budget. Good luck!

But I always buy used as much as i can. I just dont think it makes sense to have a limited budget and loose 1/2 of it when you want to upgrade...

I spent 600 on my Berning TF-10 preamp, 600 on my Parasound CDP-2000 Ultra, 400 on a Kinergetics Chiro C200 (140w/ch), and 600 on JBL L-96 speakers... and the cables are Vampire Wire copper and DH Labs ST100 hybrid (about 120 in cables),,,

What you get in a certain system is not really reflected in retail prices,,,I think that speakers squeeze a lot more performance for the dollar than the electronics,,,so to say you need 3K amps to match 5K speakers, in my opinion is nonsense,,,

There is a leveling curve at some point, and when you get some good Spendor, AudioPhysics, ProAc,Paradigm, PSB, or used Thiel, Hales, or whathavya, you will have enough speaker to be able to enjoy whichever electronics you choose.

I found that actually I rather spend (just realized it lately) on a preamp.

Krazeeyk-
I think your suggestion to pick a target budget for your system and stick with it is wise. There is a lot of flexability within that structure, and I think being decided upon one or two guidelines in a new venture will relieve some of the confusion that comes with so many choices. Ultimately, the value you achieve in your system will come from honest evaluations of what you hear. Synergy wont be achieved by following any one kind of recipe, even as all of the advice you have received from the posts above are excellent. My advice-keep an open mind. set your budget-consider the advice you have gotten, and then break with everything but that which your ears tell you works the best.Finally, be honest! This is your system and its ultimate value arrives in the enjoyment you derive from it.

As much as you've got! *s* Seriously, I don't actually believe that, but in my experience you have to get over $1,000.00 to get into what I consider some of the best speakers you can buy....Spendors or Harbeths. Then it's simply a matter of how big both your room and budget are.
It really doesn't get much simpler than that. Try some,
then try some others and see for yourself. Music, plain and simple.