How much do you have to spend?

I divide my system approach into 4 groups. Analog, Digital, Power, and Speakers.

Digital is centered on a good DAC - $2k - Streamer and CD Transport - $1.5k

Analog - Table, Arm, Cartridge, Phono Stage - $4k ( about $1k each) new cart.

Speakers - $1k to $3k Used

Power/Pre - so many great used older high current Class A/AB - $2k

$10k to $12k total for a very. very, nice system.

There are diminishing returns and there are values.  When I bought my first external DAC years ago it was a Denafrips Ares II.  Made a huge change to my system.  I caught the bug.  Year and a half later I purchased the Pontus II at 2x the money.  Was the Pontus II twice as good as the Ares II; I would say not but was it worth it; I say definitely yes.  The improved sound was not linear to the increased cost but the improved sound had definite value to my listening experience.

I could make comparative equations across most electronics in my humble opinion.  How one would do this with loudspeakers is beyond me.  A $5k system can be really really good.  Would a $10k be twice as good or $20k be four times.  Probably not, yet does the increase expenditure increase the listening pleasure; does it add value to your experience?  

How interesting that this question—allocation of resources—came up the day after I figured this out for my system.  So, here is where I have ended up … so far:

Sources:                       16%

Preamp & phono pre:   17%

Power Amps:                20%

Speakers & Subs:         28%

DAC:                               3%

Power Mgmt/Cables:      5%

Shelving:                         4%

Cables—ICs/speaker:     7%

I can see that the DAC is the next area of possible improvement, if improvement is needed.

I started back into this hobby withKEF LS50 and a NAD 375BEE integrated, so I know where you are at. I upgraded to separates, Schiit Freya and Gumby DAC and Coda amp. And then bought KEF Reference 1 used. Trust me, you can massively improve on your system. Aim high.

This is a pretty open-ended question.  When I started out a year ago, I asked a friend if I could put something together for $3,000.  Initially, he said yes.  A week later he said at least $4,000.  As I acquired components, something was always missing (sonic perfection).  A year later and about $18,000 in, I'm a lot poorer, but really happy with what I have.  Aside from my DAC that was bought during a great sale and my rack that the dealer gave me a great discount on, everything was purchased used or open box.  When you start out, you don't know what you don't know.  I now consider myself as an evangelist for upgraded power cords and power conditioners.  They moved the needle significantly on noise reduction.