Is Budget Audiophile an oxymoron?

Someone asked about my budget. I assumed that using the RP 600ms at apx 500 a pair, along with an older Yamaha (at the most $100) would give a general idea of my recent budget.
gkelly suggested a sub, and many were 700 -800; that's fine vs spending a similar amount up to 1000 on a better set of bookshelves.  Is the consensus to get a sub vs upgrading the bookshelf speakers?

It’s really impossible to determine exactly what is causing your particular dissatisfaction with your system, but in my experience, stands play a significant role in the sound of stand-mount speakers. To me, the Kallax cabinets appear fairly flimsy compared to a well-made stand and could be significantly diminishing the potential of the speakers. Maybe if you posted your system you could get some better advice. 

Budget audiophile is no oxymoron at al! You care about sound, budget is irrelevant.

I would first sort out room acoustics. "Garage" sounds to me like cinderblocks and metal door, so very harsh sound reflections. I would first try to address any slap echos with absorption panels or heavy drapery before considering speakers. I made my own absorption panels from discarded shipping pallets, some Roxul 80 (stack of towels from good will can also work), and some breathable fabric. Very budget friendly, and easy project. A few nails/screws to hold the frames together, stapler to attach cover fabric to frame. Done.

No upgrade in speaker can fix the room. And your speakers may be perfectly fine once you fixed the room :-)

What specifically don’t you like about the sound?  Sounds like you have the speakers against the wall flanking the TV, and there are lotsa issues there that aren’t helping to say the least.  Getting a pair of decent stands and getting the speakers away from the wall and off the IKEA things alone should make a noticeable improvement (speaker placement matters A LOT), and putting a blanket or something similar over the TV when listening to music could help a bit as well.  I’d start there as it’s very cheap and will likely make for significant improvements.  

@johnmarzy Some info for you.

One primer out of many.

Lot's of inexpensive speaker stands to find

First Reflection Point ...How to find and treat