At $2 a piece cds are almost disposable, play them once and throw away what you don't like. Unless you buy too many and then throw away thousands of dollars.
With equipment one can literally spend millions, and some do.
I always have a tight yearly audiophile budget, but I can go over by 10% or so. I can also spend it all at once for five years ahead. This covers equipment. As for records and cds, I don't really need a budget, I usually buy 10 or so items per year for about $30 on average.