How do you determine how much to spend on speakers

I think that the formula must include money for room treatment - besides speakers that is the #1 influence on sound quality. Fortunately room treatments are a big bang for buck category too, especially if you can DIY.

Speakers: 40%
Room Treatments: 10%
Pre/Amp: 35%
CD Source: 10%
Wires: 5%

I have always believed the room was half the battle.

The room is the most important component, not the sexiest but the most important. IMO, don't spend big money until you get the foundation settled, then build your system.

If what you've got doesn't sound good in that space, work with the space first and see what improvement you get. Maybe the speaker isn't harsh afterall.

there is no rule of thumb. if you like the speakers and can afford them, you buy them.

given a budget constraint, buy the speakers first. sacrafice on the elctronics and thenm at some point, upgrade the electronics.

for example. let's say you have a $3000. budget.

buy a "cheap" dvd player and receiver and inexpensive cables, and save the rest for the speakers.

you may not get great sound, but you will presumably buy the speakers you want and will hold onto them for a while.

My .02$

For a begining audiophile: Understand that you don't buy a system in a day - you assemble a system over years. Find the best speakers you can afford. Go to shows, shops, friends etc and find a speaker whose sonic characteristics you like and can afford. Buy them even if you have to use a reciever and lamp cord for a while. Then slowly, over time, find an amp/speaker cable to mate with them, evaluate your room and begin a treatment program, carefully pick a preamp to mate with your system and continue to work out to the front end. Don't worry that your system is not immediately perfect. It will never be - just better and better. Buy cheap used until you can afford (and fully evalutate in your system)the expensive new. When you are done you will have a system you really like and fully know. Of course if you are Bill Gate$ endowed you can just throw money around and it will come out ok in the end. But for the rest of us building a system takes time which is really more important than money. And by all means enjoy the hobby!

Cjsmithmd,
I have to say that your post is one of the most sane and helpful and insightful and practical posts I have ever read. Somehow in reading it, I drew larger lessons about life, about career choices, etc ... You seem to say, just start, do some research, understand that the journey will take time, make adjustments, learn what you like, move toward what you like, understanding all along that you will never achieve perfection ... and enjoy yourself as much as you can along the way ... man, a great philosophy of life! ... thanks! ..