Want to setup basic home audio system

I agree with those who advise to wait until you have accumulated more money — I would say $2,000.  I assume you are going to be living with such equipment a while, so it makes more sense to me to wait until you can buy higher quality equipment.  Just my 2 cents.

Yes, but where does it end?
Why not $3000, $4000?
Of course the higher the budget the more choices and quality, but a limit has to be set and to pick and choose within those parameters.

You could Get a pair of Vanatoo Transparent 1 Encore active speakers and stream to it from any computer phone or tablet via Bluetooth and have a few hundred to spare.  Very nice first system!  I have a pair in my wife’s sunroom and they are very good. A lot of latest technology smartly bundled into an inexpensive and easy to use package. Available on Amazon.  Heard them first at audio shows where they always garnish a big crowd. 

You can get a very good system for 1000-1500 if you choose wisely. Dont walk it up once you set your budget because there is always a step up ad as Carpathian suggest- it never ends. Start basic- speakers, integrated amp, source.

Hmm, I have a "Nakamichi,, Ca-5", (Mint), just sittin there......
  And there is a Nak CD player as well.........
Hmm, some low ball offer...............Who know's??