How much to spend depends on how much more information one can extract from the software collection (CDs, LPs, etc.). Everyone is limited by their collection and can do only so much for further improvement without running into point of diminishing returns.
My current setup cost ~$30k for my equipment based on late 90s early 2000s retail prices. Not sure how much those would be now, but that figure include only a fraction of the fortune I spent on NOS tubes! Some I brought brand new and some in the used market and paid less than the original price. There is another batch of equipment and vacuum tubes in the storage worth probably another $8-$10k.
I have the bug and there are times I think I want to make changes. Then I come across some modern recordings and my jaw hit the floor!! I can hardly find any shortcomings/faults. Very recently, I heard Mozart Piano Concerto #26 on NPR via my HD radio. I simply loved the presentation, sound, and the whole arrangement. Then I brought the CD, from Bridge Records. It was performed by Vassily Primakov, piano and Odense Symphony Orchestra conducted by Scott Yoo. I always thought I can pay a higher price for a better DAC and that improve "jitter" and other aspects But that turn out to be nonsense when listening to this CD. I have two DACs, AR DAC2 and DAC3 and both DACs played this CD remarkably well and very musical.
Another example is Haydn Cello Concerto # 2, again heard it first on NPR. Then I brought the CD, Truls Mork, cello with Norwegian Chamber Orchestra conducted by Iona Brown. Again same results. So in short, how much improvement one can get by spending more money depends on his/her software collection. Needless to say these modern recordings are much better than older recording. In my humble opinion, the differences between a 10k system versus 30k or even 50k will be hardly noticeable with newer recordings.
This is not to say digital playback cannot be improved. You are limited by 44.1 kHz sampling rate and 16 bit word length. One can definitely improve on jitter, channel separation from 100db to 110db or higher, higher order digital/analog filters, etc. I am not saying I can hear these differences, but others may. Same goes for LPs. It is an inherently faulty system. Higher priced turntables, tone arms, cartridges etc., may be rewarding. However, one has to keep on mind about the price point of diminishing returns. Another good and rewarding investment is the listening room. Even a lower priced system can sound like a more expensive system in the right listening room. Such is life.