From a sound perspective, I believe that the components should go in this order (from most important to least) in the analogue chain of events, IMO. Given the percentage breakdown, the turntable (*) is generally the most expensive component in your average setup so take away the turntable and concentrate on the remaining three.
40% $800 - Tonearm
35% $700 - Phono stage
25% $500 - Cartridge
(*) $1000 - Turntable
Opinions, comments anyone??