Is there a ceiling limit on what you are willing to pay for an audio component?

As many have said the answer is relative to a buyer's intensity for the hobby and financial worth 

with that said, the decisions I regret are not spending too much but passing on a component I really wanted that was just over the financial horizon so to speak 

that typically leads to early disappointment with a purchase and ultimately increased cost

I can afford whatever I want...and what I want is what I have, and none of it is "self indulgent" expensive because I prefer things that sound good to me, and don't care what reviewers or pretty much anyone else thinks about it unless I agree with them. Schiit preamp and DAC, Pass Labs (XA-25, their cheapest amp and maybe their best sounding amp), Bryston Bit 15 conditioner (it has a lot of plugs) and other stuff. Horn speakers with titanium drivers, smoking jacket and those little fancy slippers, etc. Note that expense is relative, but there's great sounding stuff for less than $130,000 speakers that are simply drivers in a box. 

$25k speakers, $12k amps, $5500 Source, $7K BACCH 3D Software, $1250avg per cable, Acoustic Treatments $3500, Headphone Amp $8k, Headphones $6K

I have no regrets, and at 48 in poor health I give no F's

My conscience wouldn’t let me go over 3 million USD. No matter how good it is, that’s my cap.

The muscle man on YouTube has about as much experience with hifi as I did when I was in my 20’s. His Wilson’s were not even set up properly by Wilson Audio or a dealer. He got them used and they were set up for the last guy’s room!
Anyway in terms of budget. You shouldn’t have one until you get the sound you want. You really need to spend what you need to spend to get the results needed so you don’t need anymore equipment after that. If you don’t get to the goal you are pissing in the wind chasing a fantasy dream instead. So if you get to your goal sonically who cares what it cost you? I never had a customer tell me their retirement dream costs too much!